Brunswick Corporation (BC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 122.34 | 112.97 | 110.39 | 105.48 | 82.89 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 122.34 | 112.97 | 110.39 | 105.48 | 82.89 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 122.34 + — – —
= 122.34
The cash conversion cycle of Brunswick Corporation has shown an increasing trend over the past five years. Starting at 82.89 days on December 31, 2020, the cash conversion cycle has steadily grown to 122.34 days by December 31, 2024. This indicates that Brunswick Corporation is taking longer to convert its investments in inventory into cash receipts from its sales.
A longer cash conversion cycle can suggest inefficiencies in managing working capital and could be a sign of potential liquidity issues or difficulties in selling inventory. It may also imply that Brunswick Corporation is experiencing challenges in collecting cash from its customers within a reasonable time frame.
It is important for Brunswick Corporation to assess and address the factors contributing to the prolonged cash conversion cycle to optimize its working capital management and ensure efficient operations. Implementing strategies to streamline inventory turnover, improve receivables collection, and manage payables effectively could help in reducing the cash conversion cycle and enhancing overall financial performance.
Peer comparison
Dec 31, 2024