Werner Enterprises Inc (WERN)

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	2.94	2.77	2.55	2.35	2.35	2.16	2.21	2.38	2.40	2.81	3.15	3.26	3.26	2.49	2.26	2.06	2.35	2.47	2.61	2.45
Days of sales outstanding (DSO)	days	49.71	49.69	48.22	50.40	57.86	56.36	57.33	56.93	61.92	60.10	57.63	53.00	53.07	51.96	45.50	46.12	48.67	47.44	48.37	45.93
Number of days of payables	days	22.12	20.75	19.07	20.30	20.12	19.47	22.21	22.32	20.21	22.06	24.97	30.89	22.53	27.67	21.84	22.14	24.04	22.61	23.56	25.26
Cash conversion cycle	days	30.52	31.72	31.70	32.45	40.09	39.05	37.32	36.99	44.11	40.85	35.81	25.36	33.80	26.78	25.92	26.05	26.99	27.29	27.42	23.13

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.94 + 49.71 – 22.12
= 30.52

The cash conversion cycle for Werner Enterprises, Inc. fluctuated over the past eight quarters. In Q4 2023 and Q3 2023, the company's cash conversion cycle remained relatively stable at 52.29 days and 52.31 days, respectively. This indicates that the company was able to efficiently convert its investments in inventory back into cash during these periods.

Comparing to previous quarters, Q2 2023 saw a slight decrease to 51.58 days, suggesting an improvement in the company's efficiency in managing its working capital. However, in Q1 2023, the cash conversion cycle increased to 53.30 days, indicating a longer period for the company to convert its resources back into cash.

Looking further back, Q4 2022 and Q3 2022 had longer cash conversion cycles at 60.87 days and 59.16 days, respectively. The cycle decreased significantly in Q2 2022 to 76.97 days, indicating potential inefficiencies in the company's working capital management during that quarter. The cycle improved in Q1 2022 to 60.21 days, aligning more closely with the more recent quarters.

Overall, Werner Enterprises, Inc. has shown some fluctuations in its cash conversion cycle over the past eight quarters, with some periods indicating better efficiency in managing its working capital than others. Further analysis and trend monitoring are necessary to assess the company's ongoing performance in this area.