Wabash National Corporation (WNC)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	47.93	59.46	57.70	52.47	40.84	55.06	58.00	59.78	53.98	61.99	65.58	62.98	45.21	50.03	44.08	47.28	33.90	48.90	47.52	46.41
Days of sales outstanding (DSO)	days	28.04	31.30	32.99	36.37	37.63	39.58	39.87	54.78	37.83	47.94	30.27	37.04	29.40	25.15	26.37	24.68	28.56	27.62	26.78	29.39
Number of days of payables	days	28.04	35.46	38.92	41.65	31.68	42.50	57.89	53.92	39.51	43.27	44.50	47.39	28.83	36.09	27.35	28.52	24.45	33.68	36.04	41.75
Cash conversion cycle	days	47.92	55.30	51.76	47.19	46.79	52.14	39.98	60.64	52.29	66.65	51.35	52.63	45.78	39.08	43.10	43.44	38.00	42.84	38.26	34.05

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.93 + 28.04 – 28.04
= 47.92

The cash conversion cycle of Wabash National Corp. fluctuated over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 46.21 days, which improved compared to the previous quarter's 53.68 days. However, it was slightly higher than Q4 2022's figure of 46.45 days.

It is worth noting that the cash conversion cycle in Q2 2022 was the lowest at 39.41 days, indicating efficient management of cash, accounts receivable, and inventory during that period. Conversely, in Q1 2022 and Q3 2022, the cash conversion cycle was relatively high at 59.92 days and 51.52 days, respectively.

Overall, the company's cash conversion cycle has shown some variability, with fluctuations indicating differing efficiency levels in managing its cash flow, accounts receivable, and inventory turnover. Monitoring this metric over time can help assess the effectiveness of Wabash National Corp.'s working capital management.