US Foods Holding Corp (USFD)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.93 | 16.14 | 16.15 | 16.73 | 16.72 | 16.70 | 16.25 | 17.25 | 17.46 | 19.51 | 20.45 | 21.60 | 20.95 | 20.46 | 21.94 | 22.99 | 20.00 | 21.20 | 20.96 | 20.98 |
| Days of sales outstanding (DSO) | days | 18.90 | 20.28 | 19.79 | 20.12 | 19.20 | 19.91 | 19.25 | — | 18.35 | — | — | — | 18.33 | — | — | — | — | — | — | — |
| Number of days of payables | days | 21.85 | 23.90 | 23.81 | 23.47 | 21.44 | 23.75 | 22.68 | 22.66 | 20.04 | 24.15 | 23.52 | 24.57 | 20.66 | 25.66 | 26.78 | 27.46 | 19.13 | 24.90 | 30.12 | 19.11 |
| Cash conversion cycle | days | 12.98 | 12.53 | 12.13 | 13.38 | 14.48 | 12.86 | 12.81 | -5.40 | 15.77 | -4.64 | -3.07 | -2.97 | 18.63 | -5.20 | -4.84 | -4.47 | 0.86 | -3.70 | -9.16 | 1.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.93 + 18.90 – 21.85
= 12.98
The cash conversion cycle for US Foods Holding Corp fluctuated over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
Initially, US Foods had a positive cash conversion cycle of 1.87 days on March 31, 2020, indicating that it took just under 2 days to complete the cycle. Subsequently, the company showed negative cash conversion cycles, with successive improvements in efficiency. These negative values suggest that US Foods was able to collect cash from sales before paying its suppliers for inventory, leading to a more efficient cash management process.
On December 31, 2021, the cash conversion cycle turned positive again, indicating that the company took almost 19 days to complete the cycle, which could be a sign of increased inventory holding or delayed collections. The cycle continued to fluctuate over the following periods, showing a mix of positive and negative values.
By June 30, 2024, the cash conversion cycle had decreased to 12.13 days, indicating an improvement in the efficiency of converting resources into cash flows. However, the cycle increased slightly by September 30, 2024, and remained relatively stable around the 12-13 day range by the end of the period on December 31, 2024.
Overall, the trend in the cash conversion cycle for US Foods Holding Corp reflects fluctuations in inventory management, accounts receivable collection, and accounts payable payment practices. Analyzing these changes can provide insights into the company's working capital management and operational efficiency.
Peer comparison
Dec 31, 2024