Ball Corporation (BALL)
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 | 47.13 | 49.72 | 56.51 | 58.12 | 56.84 | 57.59 | 66.77 | 68.32 | 55.25 | 52.32 | 49.53 | 49.13 | 48.94 | 47.06 | 50.38 | 48.18 | 57.82 | 72.56 | 119.94 | 391.40 |
| Days of sales outstanding (DSO) | days | 62.84 | 54.46 | 58.89 | 63.10 | 62.89 | 68.92 | 77.06 | 80.61 | 68.59 | 69.77 | 76.49 | 64.86 | 54.84 | 57.59 | 59.00 | 59.71 | 52.02 | 61.96 | 62.27 | 59.34 |
| Number of days of payables | days | 113.44 | 97.02 | 97.89 | 96.74 | 114.34 | 118.46 | 134.75 | 147.82 | 146.49 | 134.46 | 131.67 | 117.82 | 124.08 | 101.81 | 97.96 | 92.98 | 142.33 | 163.44 | 277.70 | 840.82 |
| Cash conversion cycle | days | -3.48 | 7.16 | 17.52 | 24.48 | 5.40 | 8.06 | 9.08 | 1.11 | -22.64 | -12.38 | -5.65 | -3.83 | -20.29 | 2.84 | 11.41 | 14.91 | -32.49 | -28.92 | -95.50 | -390.08 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.13 + 62.84 – 113.44
= -3.48
The cash conversion cycle for Ball Corp. fluctuated over the past eight quarters, ranging from -9.78 days to 19.62 days. A negative cash conversion cycle, as seen in Q4 2022 and Q1 2022, indicates that Ball Corp. was able to convert its inventory into cash faster than paying its suppliers and collecting receivables, which is a favorable position. However, in Q1 2023, the cash conversion cycle increased to 19.62 days, suggesting a longer period for the company to convert its investments in inventory and accounts receivable into cash.
The positive trend seen in Q2 2023 and Q3 2023 with 13.56 days and 2.86 days, respectively, indicates an improvement in efficiency in managing working capital. Overall, Ball Corp. should focus on optimizing its cash conversion cycle by streamlining inventory management, improving receivables collection processes, and negotiating favorable payment terms with suppliers to enhance cash flow and liquidity.
Peer comparison
Dec 31, 2023