Barnes Group Inc (B)
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 | 93.51 | 82.77 | 75.72 | 81.86 | 64.48 |
| Days of sales outstanding (DSO) | days | 93.03 | 85.40 | 77.00 | 82.91 | 87.02 |
| Number of days of payables | days | 42.06 | 42.37 | 41.42 | 38.67 | 32.84 |
| Cash conversion cycle | days | 144.48 | 125.80 | 111.31 | 126.10 | 118.66 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 93.51 + 93.03 – 42.06
= 144.48
The cash conversion cycle of Barnes Group Inc. has shown fluctuations over the past five years. The trend indicates that the company took longer to convert its investments in inventory into cash in 2023 compared to the previous year. However, compared to 2021 and 2020, the cash conversion cycle has increased in 2023. This may indicate potential inefficiencies in managing inventory, collecting receivables, or paying suppliers. It is essential for Barnes Group Inc. to closely monitor and improve its working capital management to optimize its cash conversion cycle and enhance overall liquidity and efficiency.
Peer comparison
Dec 31, 2023