YETI Holdings Inc (YETI)
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 | 147.63 | 172.01 | 162.97 | 195.65 | 110.47 |
| Days of sales outstanding (DSO) | days | 23.97 | 21.08 | 18.18 | 28.33 | 21.87 |
| Number of days of payables | days | 75.47 | 97.12 | 61.79 | 117.39 | 97.47 |
| Cash conversion cycle | days | 96.14 | 95.97 | 119.36 | 106.59 | 34.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 147.63 + 23.97 – 75.47
= 96.14
The cash conversion cycle of YETI Holdings Inc has exhibited fluctuations over the years based on the provided data.
Starting at 34.87 days on December 31, 2020, the cycle increased significantly to 106.59 days by December 31, 2021, indicating a potential delay in converting inventory into cash.
This trend continued as the cycle further extended to 119.36 days by December 31, 2022, reaching its peak. However, in the following year, there was a slight decrease to 95.97 days by December 31, 2023, suggesting some improvement in the company's efficiency in managing its working capital.
Subsequently, as of December 31, 2024, the cash conversion cycle remained relatively stable at 96.14 days, indicating a continued focus on optimizing the company's inventory, accounts receivable, and accounts payable processes to enhance cash flow management.
Overall, YETI Holdings Inc should continue monitoring and managing its cash conversion cycle effectively to ensure efficient working capital utilization and sustained financial performance.
Peer comparison
Dec 31, 2024