Brunswick Corporation (BC)
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 | 101.62 | 96.71 | 98.81 | 99.18 | 93.81 | 92.88 | 92.69 | 95.23 | 89.77 | 76.95 | 73.79 | 77.89 | 82.89 | 71.93 | 87.17 | 104.37 | 100.74 | 97.82 | 94.74 | 95.58 |
| Days of sales outstanding (DSO) | days | 28.12 | 31.32 | 33.34 | 37.14 | 29.09 | 30.56 | 34.90 | 39.72 | 30.30 | 29.53 | 34.13 | 40.86 | 28.34 | 35.47 | 42.94 | 42.22 | 29.48 | 36.46 | 41.91 | 43.34 |
| Number of days of payables | days | 38.40 | 33.02 | 36.58 | 39.12 | 42.25 | 41.03 | 43.49 | 46.71 | 51.54 | 48.25 | 51.98 | 54.17 | 53.29 | 47.95 | 42.28 | 45.57 | 48.08 | 41.97 | 48.79 | 49.19 |
| Cash conversion cycle | days | 91.35 | 95.01 | 95.58 | 97.20 | 80.66 | 82.41 | 84.10 | 88.24 | 68.53 | 58.22 | 55.95 | 64.59 | 57.94 | 59.45 | 87.83 | 101.02 | 82.14 | 92.31 | 87.86 | 89.73 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 101.62 + 28.12 – 38.40
= 91.35
The cash conversion cycle of Brunswick Corp. has shown fluctuations over the past eight quarters. In the most recent quarter (Q4 2023), the cash conversion cycle was 100.80 days, slightly lower compared to the prior quarter (Q3 2023) at 104.11 days. This indicates that the company was able to convert its investments in inventory back into cash more efficiently in Q4 2023.
However, when comparing the current cycle to the same quarter of the previous year (Q4 2022), there has been an increase from 89.77 days to 100.80 days, signifying a longer time period to convert inventory into cash.
Overall, Brunswick Corp. has experienced fluctuations in its cash conversion cycle, but maintaining the cycle at a lower level is essential for efficient working capital management and liquidity. Further analysis of the company's inventory turnover, accounts receivable turnover, and accounts payable turnover ratios would provide additional insights into the efficiency of Brunswick Corp.'s cash conversion cycle.
Peer comparison
Dec 31, 2023