US Foods Holding Corp (USFD)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.92 | 16.72 | 17.46 | 20.94 | 19.96 |
| Days of sales outstanding (DSO) | days | 18.86 | 19.19 | 18.35 | 18.33 | 17.46 |
| Number of days of payables | days | 21.85 | 21.44 | 20.04 | 20.65 | 19.10 |
| Cash conversion cycle | days | 12.94 | 14.48 | 15.77 | 18.63 | 18.32 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.92 + 18.86 – 21.85
= 12.94
The cash conversion cycle of US Foods Holding Corp has shown a consistent improvement over the years. As of December 31, 2020, the company's cash conversion cycle was 18.32 days, which increased slightly to 18.63 days by the end of 2021. However, the trend reversed in the following years, with the cash conversion cycle decreasing to 15.77 days by the end of 2022, further dropping to 14.48 days by the end of 2023, and reaching its lowest point at 12.94 days by the end of 2024. This indicates that the company has been able to manage its working capital more efficiently, leading to a shorter cash conversion cycle, which is a positive sign for the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2024