Cactus Inc (WHD)
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 | 118.02 | 114.26 | 116.71 | 121.04 | 126.93 | 138.08 | 143.68 | 171.89 | 132.02 | 141.22 | 140.99 | 140.12 | 137.90 | 133.51 | 138.52 | 154.23 | 134.76 | 115.14 | 97.53 | 92.64 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 118.02 | 114.26 | 116.71 | 121.04 | 126.93 | 138.08 | 143.68 | 171.89 | 132.02 | 141.22 | 140.99 | 140.12 | 137.90 | 133.51 | 138.52 | 154.23 | 134.76 | 115.14 | 97.53 | 92.64 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 118.02 + — – —
= 118.02
The cash conversion cycle measures the time it takes for a company like Cactus Inc to convert its investments in inventory and other resources into cash flows from sales. It encompasses the days inventory outstanding, days sales outstanding, and days payable outstanding.
Based on the data provided, Cactus Inc's cash conversion cycle has shown fluctuations over the years. From March 2020 to December 2024, the cycle has ranged from a low of 92.64 days to a high of 171.89 days.
In general, a longer cash conversion cycle indicates that Cactus Inc takes more time to convert its investments into cash, which can tie up capital and impact liquidity. Conversely, a shorter cycle suggests more efficiency in the company's operations.
Analyzing the trend, we see that the cash conversion cycle initially increased before fluctuating but has shown a decreasing trend since March 31, 2024. This suggests that Cactus Inc has improved its efficiency in managing its working capital and converting assets into cash more effectively.
It is important for Cactus Inc to continually monitor and optimize its cash conversion cycle to ensure efficient working capital management and maintain liquidity for future operations.
Peer comparison
Dec 31, 2024