Cactus Inc (WHD)
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 | 119.38 | 108.67 | 132.02 | 137.90 | 134.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 119.38 | 108.67 | 132.02 | 137.90 | 134.76 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 119.38 + — – —
= 119.38
The cash conversion cycle of Cactus Inc has fluctuated over the years, starting at 134.76 days in December 2020 and reaching a peak of 137.90 days in December 2021. However, the company managed to reduce its cash conversion cycle significantly in the following years, with 132.02 days in December 2022, 108.67 days in December 2023, and 119.38 days in December 2024. This indicates that Cactus Inc has become more efficient in managing its cash flow and working capital, leading to a shorter time to convert its investments in inventory and other resources into cash. Overall, the trend suggests an improvement in the company's operational efficiency and effectiveness in managing its working capital.
Peer comparison
Dec 31, 2024