Balchem Corporation (BCPC)
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 | 77.32 | 70.05 | 69.35 | 65.07 | 64.44 | 67.35 | 69.84 | 68.59 | 65.99 | 78.67 | 84.53 | 67.49 | 59.79 | 56.35 | 55.79 | 57.66 | 53.73 | 60.38 | 65.58 | 68.47 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 77.32 | 70.05 | 69.35 | 65.07 | 64.44 | 67.35 | 69.84 | 68.59 | 65.99 | 78.67 | 84.53 | 67.49 | 59.79 | 56.35 | 55.79 | 57.66 | 53.73 | 60.38 | 65.58 | 68.47 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.32 + — – —
= 77.32
The cash conversion cycle for Balchem Corporation has shown fluctuations over the past few years. The cycle measures the length of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2021, the cash conversion cycle steadily decreased from 68.47 days to 59.79 days, indicating an improvement in the efficiency of converting resources into cash.
However, from March 31, 2022, to December 31, 2024, the cash conversion cycle fluctuated between 65.07 days and 77.32 days. This fluctuation suggests that Balchem Corporation may have faced challenges impacting its ability to efficiently convert resources into cash during these periods.
Analyzing the trend, it is important for Balchem Corporation to closely monitor and manage its inventory levels, accounts receivable, and accounts payable to improve its cash conversion cycle and optimize its working capital management. Balchem may need to assess its operational processes and supply chain management to potentially shorten the cycle duration and enhance overall financial performance.
Peer comparison
Dec 31, 2024