WESCO International Inc (WCC)
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 | 74.72 | 74.33 | 76.20 | 67.46 | 78.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 74.72 | 74.33 | 76.20 | 67.46 | 78.99 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 74.72 + — – —
= 74.72
The cash conversion cycle of WESCO International Inc has shown some fluctuations over the years. In December 2020, the cash conversion cycle was relatively high at 78.99 days, indicating that the company took almost 79 days to convert its investments in inventory and accounts receivable into cash.
By December 2021, the cash conversion cycle improved to 67.46 days, suggesting that the company was able to streamline its operations and convert its assets into cash more efficiently within approximately 67 days.
In the following years, the cash conversion cycle slightly increased to 76.20 days in December 2022, decreased to 74.33 days in December 2023, and then slightly increased again to 74.72 days by December 2024. These fluctuations indicate that WESCO International Inc may have experienced variations in managing its inventory, receivables, and payables during these periods.
Overall, a lower cash conversion cycle is generally favorable as it signifies that the company is able to generate cash quickly from its operating activities. However, it is important for WESCO International Inc to monitor and potentially improve its cash conversion cycle to ensure optimal liquidity and efficiency in its operations.
Peer comparison
Dec 31, 2024