Werner Enterprises Inc (WERN)
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 | 1.92 | 2.31 | 1.92 | 1.80 | 2.30 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 1.92 | 2.31 | 1.92 | 1.80 | 2.30 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.92 + — – —
= 1.92
Werner Enterprises Inc's cash conversion cycle has shown some fluctuation over the years. As of December 31, 2020, the company's cash conversion cycle was 2.30 days, indicating that it took approximately 2.30 days for the company to convert its resources into cash.
By December 31, 2021, the cash conversion cycle improved to 1.80 days, suggesting that the company was able to convert its resources into cash more efficiently within a shorter time period. However, by the end of December 31, 2022, the cash conversion cycle slightly increased to 1.92 days.
Subsequently, by December 31, 2023, the cash conversion cycle increased to 2.31 days, indicating a longer time taken for the company to convert its resources into cash compared to the previous year. Finally, by December 31, 2024, the cash conversion cycle returned to 1.92 days, similar to the level observed in 2022.
Overall, Werner Enterprises Inc's cash conversion cycle has displayed variation over the years, with fluctuations between approximately 1.80 to 2.31 days. An analysis of the drivers behind these changes could provide insights into the company's operational efficiency and working capital management strategies.
Peer comparison
Dec 31, 2024