Werner Enterprises Inc (WERN)
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 | 1.86 | 1.96 | 2.05 | 2.17 | 2.28 | 2.20 | 2.06 | 1.91 | 1.92 | 1.75 | 1.79 | 1.85 | 1.80 | 2.03 | 2.17 | 2.26 | 2.30 | 1.77 | 1.61 | 1.46 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 1.86 | 1.96 | 2.05 | 2.17 | 2.28 | 2.20 | 2.06 | 1.91 | 1.92 | 1.75 | 1.79 | 1.85 | 1.80 | 2.03 | 2.17 | 2.26 | 2.30 | 1.77 | 1.61 | 1.46 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.86 + — – —
= 1.86
The cash conversion cycle for Werner Enterprises Inc has shown fluctuations over the past few years. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 1.46 days to a high of 2.30 days. The trend suggests that the cycle initially increased, peaking at the end of 2020, and then consistently decreased before showing some variability in recent periods.
On average, the company takes approximately 1.96 days to convert its resources into cash flows. A shorter cash conversion cycle generally indicates that the company is managing its working capital efficiently, while a longer cycle may signal potential liquidity issues or inefficiencies in inventory management.
Analyzing the cash conversion cycle can provide insights into the company's efficiency in managing its cash flows and working capital, as well as its operational effectiveness in turning investments into revenue. It is important for Werner Enterprises Inc to continue monitoring and optimizing its cash conversion cycle to maintain financial health and improve overall performance.
Peer comparison
Dec 31, 2024