Wabash National Corporation (WNC)
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 | 56.06 | 52.77 | 52.31 | 51.47 | 47.85 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 56.06 | 52.77 | 52.31 | 51.47 | 47.85 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.06 + — – —
= 56.06
The cash conversion cycle of Wabash National Corporation has varied over the years based on the provided data. The cash conversion cycle is a measure of how efficiently a company is managing its working capital to generate sales and cash flow. A lower cash conversion cycle usually indicates a more efficient management of cash, inventory, and receivables.
Looking at the trend from March 31, 2020, to December 31, 2024, we observe fluctuations in the cash conversion cycle. The cycle started at 47.28 days in March 2020, decreased to 40.84 days by December 2022, and then increased to 56.06 days by December 2024. This pattern suggests that the company's management of cash, inventory, and receivables has seen varying levels of efficiency over this period.
The company experienced its lowest cash conversion cycle of 40.84 days by the end of December 2022, indicating a strong performance in managing its working capital. However, the cycle increased to 56.06 days by the end of December 2024, which may indicate a slowdown in the efficiency of cash conversion.
Overall, monitoring the cash conversion cycle can help assess the effectiveness of Wabash National Corporation in managing its cash flow and working capital. It is essential for the company to continue evaluating and improving its cash conversion cycle to ensure efficient operations and financial performance.