Brinks Company (BCO)
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 | 2.37 | 49.92 | — | 37.61 | 35.41 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 2.37 | 49.92 | 0.00 | 37.61 | 35.41 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.37 + — – —
= 2.37
The cash conversion cycle is a measure of how efficiently a company manages its working capital. It reflects the time it takes for a company to convert its investments in inventory and other resources back into cash flow from sales.
In this case, Brinks Company's cash conversion cycle has fluctuated over the years. As of December 31, 2020, the company had a cash conversion cycle of 35.41 days, indicating that it took roughly 35 days to convert its resources into cash flow from sales. By December 31, 2021, the cycle had slightly increased to 37.61 days, suggesting a slight delay in the conversion process.
Interestingly, on December 31, 2022, the cash conversion cycle was reported as 0.00 days, which is an abnormal and potentially erroneous value. This may indicate a data discrepancy or a peculiar operational scenario that warrants further investigation.
Subsequently, by December 31, 2023, the cycle increased significantly to 49.92 days, showing a prolonged conversion period compared to previous years. However, on December 31, 2024, the cycle dropped significantly to 2.37 days, signaling a swift and efficient conversion of resources into cash flow.
Overall, Brinks Company's cash conversion cycle data exhibits some variability, with fluctuations in the efficiency of working capital management over time. It is essential for the company to focus on optimizing this cycle to ensure smoother cash flow operations and sustained financial health.
Peer comparison
Dec 31, 2024