YETI Holdings Inc (YETI)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 172.01 | 162.97 | 195.65 | 110.47 | 154.60 |
| Days of sales outstanding (DSO) | days | 21.08 | 18.18 | 28.33 | 21.87 | 33.03 |
| Number of days of payables | days | 97.12 | 61.79 | 117.39 | 97.47 | 69.79 |
| Cash conversion cycle | days | 95.97 | 119.36 | 106.59 | 34.87 | 117.85 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 172.01 + 21.08 – 97.12
= 95.97
The cash conversion cycle of YETI Holdings Inc has shown fluctuations over the past five years. In 2023, the cash conversion cycle decreased to 95.97 days from 119.36 days in 2022, indicating an improvement in the company's ability to efficiently manage its working capital. This trend is also notable compared to 2021 when the cycle was at 106.59 days.
However, it is important to highlight that the cash conversion cycle was significantly lower in 2020 at 34.87 days, reflecting a faster conversion of inventory into cash during that period. On the other hand, in 2019, the cycle was at a relatively high level of 117.85 days, indicating a longer time taken by the company to convert its resources into cash.
Overall, YETI Holdings Inc has experienced variability in its cash conversion cycle over the past five years, with the company showing improvement in recent years but still facing challenges in optimizing its working capital efficiency.
Peer comparison
Dec 31, 2023