WESCO International Inc (WCC)
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 | 62.15 | 61.56 | 62.96 | 66.37 | 63.91 | 65.54 | 61.17 | 57.92 | 55.88 | 58.11 | 59.30 | 67.89 | 78.99 | 103.04 | 128.23 | 51.09 | 54.48 | 52.49 | 53.03 | 50.89 |
| Days of sales outstanding (DSO) | days | 91.64 | 61.64 | 63.11 | 63.14 | 95.99 | 63.80 | 66.34 | 62.69 | 92.19 | 61.67 | 61.36 | 65.27 | 108.27 | 88.35 | 107.89 | 52.98 | 74.96 | 58.03 | 60.41 | 56.86 |
| Number of days of payables | days | 42.30 | 46.06 | 46.77 | 47.13 | 49.83 | 48.42 | 51.24 | 47.07 | 44.86 | 50.80 | 53.36 | 57.96 | 62.33 | 80.02 | 89.86 | 43.23 | 44.73 | 46.36 | 45.88 | 44.22 |
| Cash conversion cycle | days | 111.48 | 77.14 | 79.30 | 82.38 | 110.07 | 80.91 | 76.26 | 73.55 | 103.21 | 68.98 | 67.29 | 75.20 | 124.93 | 111.37 | 146.26 | 60.84 | 84.72 | 64.17 | 67.57 | 63.52 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.15 + 91.64 – 42.30
= 111.48
The cash conversion cycle of Wesco International, Inc. fluctuated over the past eight quarters, indicating varying efficiency in managing its working capital.
In Q4 2023, the cash conversion cycle was 90.10 days, slightly longer than in Q3 2023 at 86.84 days. This suggests that the company took longer to convert its investments in inventory and other resources into cash during this period.
Comparing Q4 2023 to Q1 2022, there was a noticeable increase in the cash conversion cycle from 82.64 days to 90.10 days, reflecting a potential deterioration in the company's liquidity management over this timeframe.
Overall, Wesco International, Inc. should analyze the reasons behind these fluctuations in the cash conversion cycle and take actions to optimize its working capital management to ensure efficient operations and sustainable growth.
Peer comparison
Dec 31, 2023