Brinks Company (BCO)
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 | 2.37 | — | — | 54.83 | 1.85 | 38.60 | — | 5.05 | — | — | — | — | 37.61 | — | — | — | 35.41 | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 2.37 | 0.00 | 0.00 | 54.83 | 1.85 | 38.60 | 0.00 | 5.05 | 0.00 | 0.00 | 0.00 | 0.00 | 37.61 | 0.00 | 0.00 | 0.00 | 35.41 | 0.00 | 0.00 | 0.00 |
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 cash flow. For Brinks Company, the cash conversion cycle fluctuated over the period from March 31, 2020, to December 31, 2024.
The company had a cash conversion cycle of 0.00 days for multiple quarters, indicating that it was able to quickly convert its investments in inventory and accounts receivable into cash, and efficiently manage its payables during those periods.
However, there were quarters where the cash conversion cycle increased significantly, such as on December 31, 2021, and September 30, 2023, where it reached 37.61 days and 38.60 days, respectively. This could suggest that during those periods, Brinks Company took longer to convert its investments into cash, which may indicate inefficiencies in managing inventory, collecting receivables, or paying its obligations.
On March 31, 2024, the cash conversion cycle spiked to 54.83 days, which is notably higher than previous quarters. This could be a signal of potential liquidity challenges or inefficiencies in cash management during that particular period.
Overall, a lower cash conversion cycle is generally preferred as it indicates that the company is efficiently managing its working capital. Brinks Company should closely monitor and try to improve its cash conversion cycle to ensure optimal financial performance and liquidity management.
Peer comparison
Dec 31, 2024