Willscot Mobile Mini Holdings Corp A (WSC)

Cash conversion cycle

		Mar 31, 2025	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
Days of inventory on hand (DOH)	days	15.83	15.58	17.21	16.50	16.42	16.78	15.94	15.44	14.37	14.04	15.69	15.40	15.21	12.90	12.68	13.68	11.44	11.17	12.45	8.52
Days of sales outstanding (DSO)	days	61.73	65.57	67.65	67.00	68.91	69.63	73.12	68.82	64.74	65.45	72.47	76.69	74.38	77.03	80.13	76.54	76.56	88.32	100.97	79.91
Number of days of payables	days	31.16	31.71	35.28	39.44	34.64	30.49	32.91	31.95	31.49	36.97	56.02	57.40	51.63	40.40	59.56	55.95	52.81	55.15	61.95	50.55
Cash conversion cycle	days	46.40	49.45	49.58	44.06	50.69	55.92	56.15	52.31	47.62	42.51	32.13	34.68	37.96	49.53	33.25	34.28	35.19	44.34	51.47	37.87

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.83 + 61.73 – 31.16
= 46.40

The cash conversion cycle (CCC) of Willscot Mobile Mini Holdings Corp A exhibits notable fluctuations over the analyzed period from June 2020 through March 2025. Starting at approximately 37.87 days in June 2020, the CCC increased significantly, reaching a peak of around 56.15 days in September 2023. This upward trend indicates a lengthening of the time taken to convert investments in inventory and receivables into cash, suggesting potential delays in collections, extended inventory holding periods, or longer payables cycles.

From the initial low in mid-2020, the cycle experienced periodic increases and decreases, reflecting potential seasonal or operational adjustments. The lowest observed point was approximately 32.13 days in September 2022, demonstrating periods of improved cash flow efficiency. Conversely, the maximum peak occurred around September 2023, aligning with a period of operational or economic challenges that extended the cash cycle.

Subsequently, the CCC declined somewhat, reaching approximately 44.06 days in June 2024 before marginally increasing again to 46.40 days in March 2025. Overall, the trend indicates a general lengthening over the analyzed duration, with a notable peak in late 2023, followed by partial adjustments.

In summary, the company's cash conversion cycle has experienced considerable variability, with an overall upward trajectory since mid-2020. This pattern suggests evolving operating efficiencies, shifts in receivables or inventory management, and potentially changing supplier or customer payment behaviors. Continuous monitoring and management of working capital components are implied to optimize the cash cycle and enhance liquidity.