Barnes Group Inc (B)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 93.51 | 102.61 | 86.44 | 83.31 | 83.39 | 77.80 | 76.34 | 79.79 | 75.78 | 77.06 | 79.03 | 81.25 | 81.89 | 79.15 | 79.79 | 69.11 | 64.48 | 69.93 | 71.05 | 70.56 |
| Days of sales outstanding (DSO) | days | 93.04 | 97.07 | 88.73 | 85.69 | 85.39 | 76.25 | 81.94 | 79.28 | 77.03 | 77.91 | 81.65 | 85.50 | 82.92 | 76.59 | 73.04 | 86.29 | 69.21 | 72.39 | 60.72 | 52.75 |
| Number of days of payables | days | 42.06 | 43.20 | 42.25 | 43.65 | 42.68 | 39.50 | 40.29 | 42.17 | 41.44 | 40.20 | 41.76 | 41.33 | 38.68 | 29.59 | 31.71 | 33.29 | 32.84 | 33.54 | 36.12 | 36.29 |
| Cash conversion cycle | days | 144.49 | 156.48 | 132.91 | 125.35 | 126.10 | 114.55 | 117.99 | 116.91 | 111.36 | 114.76 | 118.92 | 125.42 | 126.13 | 126.15 | 121.12 | 122.12 | 100.86 | 108.78 | 95.65 | 87.01 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 93.51 + 93.04 – 42.06
= 144.49
The cash conversion cycle of Barnes Group Inc. has fluctuated over the past eight quarters. The company's ability to convert its resources and investments into cash has varied, with Q3 2023 showing the longest cycle of 179.83 days and Q1 2023 displaying the shortest cycle of 143.82 days.
Overall, there has been some volatility in the cash conversion cycle, indicating potential challenges in managing working capital efficiently. It is crucial for the company to focus on optimizing its inventory turnover, accounts receivable collection, and accounts payable management to potentially shorten the cycle and improve liquidity. Tracking and analyzing these fluctuations can provide insights into areas that require attention to enhance operational and financial performance.
Peer comparison
Dec 31, 2023