US Foods Holding Corp (USFD)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 17.35 | 17.33 | 16.87 | 17.91 | 17.46 | 19.51 | 20.45 | 21.60 | 20.95 | 20.46 | 21.94 | 22.99 | 20.00 | 21.20 | 20.96 | 20.98 | 21.51 | 22.76 | 20.11 | 20.29 |
| Days of sales outstanding (DSO) | days | 19.15 | 19.86 | 19.20 | — | 18.35 | — | — | — | 18.33 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 22.24 | 24.64 | 23.54 | 23.52 | 20.04 | 24.15 | 23.52 | 24.57 | 20.66 | 25.66 | 26.78 | 27.46 | 19.13 | 24.90 | 30.12 | 19.11 | 21.93 | 25.50 | 24.18 | 24.47 |
| Cash conversion cycle | days | 14.26 | 12.55 | 12.53 | -5.61 | 15.77 | -4.64 | -3.07 | -2.97 | 18.63 | -5.20 | -4.84 | -4.47 | 0.86 | -3.70 | -9.16 | 1.87 | -0.42 | -2.74 | -4.06 | -4.18 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 17.35 + 19.15 – 22.24
= 14.26
The cash conversion cycle for US Foods Holding Corp fluctuated over the periods analyzed. This metric measures the time it takes for a company to convert its investment in inventory into cash flows from sales of the inventory. A shorter cash conversion cycle indicates that the company is able to quickly sell its inventory and collect cash from customers.
Looking at the data provided, the company experienced positive cash conversion cycles during some periods, suggesting efficient management of its working capital. However, there were also periods where the cash conversion cycle was negative, indicating potential issues with inventory management or delays in collecting receivables.
It is important for US Foods Holding Corp to closely monitor and address any fluctuations in its cash conversion cycle to ensure optimal working capital management and cash flow efficiency. By analyzing trends over time and comparing with industry benchmarks, the company can identify areas for improvement and implement strategies to enhance its overall financial performance.
Peer comparison
Dec 31, 2023