Brunswick Corporation (BC)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 120.85 | 132.66 | 131.62 | 129.41 | 116.82 | 110.54 | 112.35 | 111.65 | 109.66 | 108.79 | 108.55 | 112.23 | 105.48 | 86.89 | 80.42 | 81.50 | 82.89 | 71.93 | 87.17 | 104.37 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 120.85 | 132.66 | 131.62 | 129.41 | 116.82 | 110.54 | 112.35 | 111.65 | 109.66 | 108.79 | 108.55 | 112.23 | 105.48 | 86.89 | 80.42 | 81.50 | 82.89 | 71.93 | 87.17 | 104.37 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 120.85 + — – —
= 120.85
The cash conversion cycle for Brunswick Corporation has shown fluctuations over the periods analyzed. Initially, the company's cash conversion cycle was relatively high at 104.37 days on March 31, 2020, indicating a longer time taken to convert investments in inventory and other resources into cash flows from sales.
Subsequently, there was an improvement in the efficiency of the company's cash conversion cycle, with the cycle steadily decreasing to as low as 71.93 days on September 30, 2020, before slightly increasing to 82.89 days on December 31, 2020.
The trend of improvement continued into the first half of 2021, with the cycle reaching its lowest point of 80.42 days on June 30, 2021. However, from December 31, 2021, the cycle started to increase again, reaching 116.82 days on December 31, 2023.
Overall, it is important for Brunswick Corporation to carefully manage its cash conversion cycle, aiming to strike a balance between minimizing the cycle to improve liquidity and maximizing the cycle to optimize operational efficiency and profitability. Potential strategies to achieve this balance may include streamlining inventory management, optimizing accounts receivable collection, and negotiating favorable payment terms with suppliers.
Peer comparison
Dec 31, 2024