Brinks Company (BCO)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	38.60	—	5.05	—	—	—	—	37.61	—	—	—	35.41	—	—	—	17.70	—	—	—
Days of sales outstanding (DSO)	days	63.12	63.92	68.97	72.08	74.48	66.96	70.99	67.67	64.66	65.83	66.51	67.72	70.77	73.04	72.48	65.43	66.85	66.54	70.49	54.35
Number of days of payables	days	24.59	20.62	23.35	25.62	31.26	20.72	24.08	21.92	23.82	21.49	23.01	22.21	26.13	22.44	22.75	19.60	23.78	21.91	21.96	19.78
Cash conversion cycle	days	38.54	81.91	45.62	51.51	43.21	46.23	46.91	45.75	78.45	44.34	43.51	45.50	80.04	50.60	49.73	45.83	60.77	44.63	48.53	34.57

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 63.12 – 24.59
= 38.54

The cash conversion cycle of Brink`s Co. has exhibited fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle improved to 35.04 days, indicating that it took less time to convert its investments in inventory and accounts receivable into cash. This trend continued to show improvement compared to the previous quarters, reaching a recent low in the cycle.

The gradual decrease in the cash conversion cycle from Q1 2023 to Q4 2023 suggests that Brink`s Co. has been managing its cash flows more effectively and efficiently. A shorter cash conversion cycle is generally considered positive as it signifies that the company is able to collect cash from sales and convert it into cash or cash equivalents quickly.

Overall, the downward trend in the cash conversion cycle indicates improved liquidity and operational efficiency for Brink`s Co. during the period under review. However, it is essential for the company to sustain this positive trend to ensure continued financial health and stability.