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SW (Smurfit WestRock) Cash Conversion Cycle : 56.48 (As of Dec. 2024)


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What is Smurfit WestRock Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Smurfit WestRock's Days Sales Outstanding for the three months ended in Dec. 2024 was 52.83.
Smurfit WestRock's Days Inventory for the three months ended in Dec. 2024 was 53.39.
Smurfit WestRock's Days Payable for the three months ended in Dec. 2024 was 49.74.
Therefore, Smurfit WestRock's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2024 was 56.48.


Smurfit WestRock Cash Conversion Cycle Historical Data

The historical data trend for Smurfit WestRock's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Smurfit WestRock Cash Conversion Cycle Chart

Smurfit WestRock Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.99 43.49 44.40 43.87 48.35

Smurfit WestRock Quarterly Data
Mar17 Jun17 Sep17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Sep23 Dec23 Jun24 Sep24 Dec24
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.11 35.41 40.44 38.26 56.48

Competitive Comparison of Smurfit WestRock's Cash Conversion Cycle

For the Packaging & Containers subindustry, Smurfit WestRock's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Smurfit WestRock's Cash Conversion Cycle Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Smurfit WestRock's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Smurfit WestRock's Cash Conversion Cycle falls into.


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Smurfit WestRock Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Smurfit WestRock's Cash Conversion Cycle for the fiscal year that ended in Dec. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=51.21+51.28-54.14
=48.35

Smurfit WestRock's Cash Conversion Cycle for the quarter that ended in Dec. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=52.83+53.39-49.74
=56.48

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Smurfit WestRock  (NYSE:SW) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Smurfit WestRock Cash Conversion Cycle Related Terms

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Smurfit WestRock Business Description

Traded in Other Exchanges
Address
Beech Hill, Clonskeagh, Dublin 4, Dublin, IRL, D04 N2R2
Smurfit WestRock manufactures corrugated packaging and consumer packaging, such as folding cartons and paperboard. After the merger of Smurfit Kappa and WestRock in summer 2024, Smurfit WestRock became the largest producer of containerboard in the world, with substantial operations in North America, South America, and Europe.