Belden Inc (BDC)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.02 | 73.76 | 82.38 | 76.72 | 63.12 |
| Days of sales outstanding (DSO) | days | 60.13 | 61.63 | 60.82 | 61.83 | 57.31 |
| Number of days of payables | days | 80.45 | 75.60 | 90.15 | 75.73 | 73.25 |
| Cash conversion cycle | days | 65.70 | 59.80 | 53.05 | 62.82 | 47.18 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.02 + 60.13 – 80.45
= 65.70
The cash conversion cycle of Belden Inc has shown a fluctuating trend over the past five years. In 2023, it increased to 65.70 days from 59.80 days in 2022. This indicates that the company took longer to convert its investments in inventory and other resources into cash during 2023.
Compared to 2021, the cash conversion cycle increased by 12.35 days in 2023. This suggests a potential inefficiency in managing the company's working capital and operations during the most recent year.
In general, a longer cash conversion cycle implies that Belden Inc takes more time to collect cash from its sales and/or takes longer to pay off its obligations. This could potentially strain the company's liquidity and overall financial health if not managed effectively. It would be important for Belden Inc to closely monitor and potentially improve its cash conversion cycle to ensure optimal cash flow management and operational efficiency.
Peer comparison
Dec 31, 2023