YETI Holdings Inc (YETI)
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 | 147.63 | 179.93 | 188.46 | 184.18 | 172.01 | 157.33 | 143.18 | 151.87 | 162.97 | 216.99 | 261.61 | 238.82 | 195.65 | 174.14 | 154.85 | 138.89 | 110.47 | 109.87 | 116.27 | 167.23 |
| Days of sales outstanding (DSO) | days | 23.97 | 29.08 | 33.02 | 23.30 | 21.08 | 29.42 | 30.27 | — | 18.18 | — | — | — | 28.33 | — | — | — | — | — | — | — |
| Number of days of payables | days | 75.47 | 72.01 | 87.28 | 70.42 | 97.12 | 82.54 | 63.79 | 44.51 | 61.79 | 60.64 | 108.96 | 96.80 | 117.39 | 108.74 | 101.77 | 90.65 | 97.47 | 83.12 | 34.72 | 61.46 |
| Cash conversion cycle | days | 96.14 | 137.00 | 134.20 | 137.07 | 95.97 | 104.20 | 109.66 | 107.36 | 119.36 | 156.35 | 152.65 | 142.02 | 106.59 | 65.40 | 53.08 | 48.24 | 13.00 | 26.75 | 81.54 | 105.77 |
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 fluctuated over the years based on the provided data. The cash conversion cycle represents the time it takes for a company to convert its investments in inventories into cash flow from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 13.00 days to a high of 156.35 days. A lower number of days is generally favorable as it indicates that the company is able to quickly convert its inventory into sales and subsequently into cash.
YETI Holdings Inc experienced a decreasing trend in its cash conversion cycle from September 30, 2020, to December 31, 2021, indicating an improvement in efficiency in managing its working capital. However, from March 31, 2022, to September 30, 2024, the cash conversion cycle increased, reaching its peak at 156.35 days on September 30, 2022.
This increase in the cash conversion cycle could imply that the company is taking longer to sell its inventory or collect cash from customers, which may be a potential concern for liquidity and operational efficiency. Management may need to focus on improving inventory management, sales practices, and accounts receivable collection efforts to reduce the cash conversion cycle and enhance cash flow efficiency.
Peer comparison
Dec 31, 2024