Whirlpool Corporation (WHR)
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 | 45.41 | 48.99 | 47.27 | 47.01 | 44.31 | 47.09 | 49.15 | 45.08 | 39.85 | 53.69 | 58.83 | 58.19 | 49.65 | 55.31 | 51.52 | 50.11 | 48.51 | 46.99 | 44.67 | 50.59 |
| Days of sales outstanding (DSO) | days | 29.57 | 34.69 | 32.24 | 33.14 | 29.38 | 39.16 | 35.80 | 34.33 | 32.03 | 43.64 | 47.68 | 48.47 | 51.63 | 53.02 | 51.20 | 53.75 | 58.73 | 52.44 | 37.94 | 34.75 |
| Number of days of payables | days | 78.77 | 74.36 | 70.02 | 67.21 | 70.95 | 67.70 | 69.64 | 66.48 | 64.40 | 82.75 | 92.55 | 97.64 | 98.92 | 98.60 | 94.69 | 94.81 | 101.92 | 88.62 | 69.82 | 80.86 |
| Cash conversion cycle | days | -3.79 | 9.32 | 9.49 | 12.94 | 2.74 | 18.55 | 15.31 | 12.93 | 7.48 | 14.58 | 13.95 | 9.02 | 2.36 | 9.73 | 8.03 | 9.06 | 5.33 | 10.81 | 12.79 | 4.47 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.41 + 29.57 – 78.77
= -3.79
The cash conversion cycle of Whirlpool Corporation, which represents the average number of days it takes for the company to convert its investments in inventory and other resources into cash from sales, has fluctuated over the reported periods.
The cash conversion cycle was relatively stable in the beginning, with a downward trend from March 31, 2020, to December 31, 2021, indicating efficiency in managing working capital. However, there was an increase in the cycle from June 30, 2022, to September 30, 2023, suggesting potential issues in inventory management or collection of receivables.
The negative value reported on December 31, 2024, indicates that the company is able to convert its cash into the production cycle before paying its suppliers, which can be a sign of aggressive supplier management or potential risks related to liquidity.
Overall, analyzing the cash conversion cycle can provide valuable insights into the efficiency of Whirlpool Corporation's working capital management and operational effectiveness over the reported periods.
Peer comparison
Dec 31, 2024