Boise Cascad Llc (BCC)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 42.60 | 35.66 | 35.07 | 36.31 | 40.97 |
| Days of sales outstanding (DSO) | days | 0.94 | 13.98 | 21.35 | 26.27 | 18.21 |
| Number of days of payables | days | — | 13.79 | 17.78 | 22.19 | 18.36 |
| Cash conversion cycle | days | 43.54 | 35.85 | 38.64 | 40.39 | 40.82 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 42.60 + 0.94 – —
= 43.54
The cash conversion cycle of Boise Cascade Co has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle increased to 46.98 days from 38.00 days in 2022. This indicates that it took Boise Cascade Co longer to convert its investments in inventory and accounts receivable into cash during 2023.
Comparing to the previous years, the cash conversion cycle was also higher in 2021 at 40.07 days compared to 26.08 days in 2020 and 18.21 days in 2019. This suggests that the company experienced delays in converting its resources into cash in those particular years.
Overall, the trend indicates a recent increase in the cash conversion cycle, which may warrant further investigation into the company's operations, inventory management, and accounts receivable collection processes to identify areas for improvement and potential efficiencies to shorten the cycle.
Peer comparison
Dec 31, 2023