Whirlpool Corporation (WHR)
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 | 45.01 | 43.96 | 39.40 | 49.12 | 45.78 |
| Days of sales outstanding (DSO) | days | 29.41 | 29.38 | 32.03 | 51.63 | 58.88 |
| Number of days of payables | days | 78.07 | 70.40 | 63.68 | 97.86 | 96.17 |
| Cash conversion cycle | days | -3.65 | 2.94 | 7.76 | 2.89 | 8.48 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.01 + 29.41 – 78.07
= -3.65
The cash conversion cycle for Whirlpool Corporation has shown fluctuating trends over the past five years. In December 2020, the company had a cash conversion cycle of 8.48 days, indicating that it took approximately 8.48 days to convert its investments in inventory and accounts receivable into cash.
By December 2021, the cash conversion cycle decreased to 2.89 days, showing an improvement in the efficiency of the company's working capital management. This suggests that the company was able to convert its investments into cash at a faster rate compared to the previous year.
In December 2022, the cash conversion cycle increased to 7.76 days, indicating a slight deterioration in the efficiency of working capital management. However, in December 2023, there was a slight improvement as the cash conversion cycle decreased to 2.94 days.
Notably, in December 2024, the cash conversion cycle turned negative at -3.65 days, which may suggest that the company was able to convert its investments into cash at a faster rate than acquiring new inventory and receivables. This may indicate an efficient working capital management, leading to potential cash savings.
Overall, while there have been fluctuations in the cash conversion cycle for Whirlpool Corporation, the trend suggests potential improvements in working capital efficiency and cash conversion over the five-year period.
Peer comparison
Dec 31, 2024