Wabash National Corporation (WNC)
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 | 56.18 | 47.93 | 40.84 | 53.98 | 45.21 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 56.18 | 47.93 | 40.84 | 53.98 | 45.21 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.18 + — – —
= 56.18
The cash conversion cycle for Wabash National Corporation has shown fluctuating trends over the years. In 2020, the company had a cash conversion cycle of 45.21 days, which increased to 53.98 days by the end of 2021. However, there was a significant improvement in the cash conversion cycle in 2022, dropping to 40.84 days. Nevertheless, the cycle increased again to 47.93 days in 2023 and further to 56.18 days in 2024.
Overall, the company's cash conversion cycle has experienced variability, indicating potential inefficiencies in managing its operating cycle, including the collection of receivables, management of inventory, and timing of payments to suppliers. This can impact the company's liquidity and working capital management. Monitoring and potentially optimizing the cash conversion cycle can aid the company in enhancing its cash flow and overall financial performance.