Boise Cascad Llc (BCC)
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 | 53.66 | 52.54 | 54.53 | 53.84 | 48.07 | 46.30 | 45.81 | 45.14 | 39.34 | 42.59 | 45.04 | 44.64 | 38.28 | 38.29 | 45.69 | 44.71 | 40.51 | 39.09 | 41.01 | 48.21 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 53.66 | 52.54 | 54.53 | 53.84 | 48.07 | 46.30 | 45.81 | 45.14 | 39.34 | 42.59 | 45.04 | 44.64 | 38.28 | 38.29 | 45.69 | 44.71 | 40.51 | 39.09 | 41.01 | 48.21 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 53.66 + — – —
= 53.66
The cash conversion cycle for Boise Cascade LLC has shown fluctuations over the periods analyzed. The cycle, which represents the time it takes for a company to convert its investment in inventory into cash received from sales, ranged from a low of 38.29 days on September 30, 2021, to a high of 54.53 days on June 30, 2024.
A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and turn inventory into sales and cash quicker, which is generally seen as positive. Conversely, a higher cash conversion cycle may suggest inefficiencies or delays in the company's operations or collection of receivables.
Boise Cascade LLC experienced an improvement in its cash conversion cycle from September 30, 2021, to December 31, 2022, where it decreased from 42.59 days to 39.34 days. However, there was an increase in the cycle in the following periods until June 30, 2024.
It is essential for the company to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management, improve liquidity, and enhance overall financial performance. Further analysis of the company's operational and financial strategies may provide insights into the factors influencing the fluctuations in the cash conversion cycle over the periods reviewed.
Peer comparison
Dec 31, 2024