Belden Inc (BDC)
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 | 81.38 | 91.64 | 94.91 | 91.38 | 86.02 | 75.57 | 75.45 | 80.34 | 73.76 | 76.28 | 87.17 | 90.94 | 82.38 | 79.89 | 83.49 | 82.19 | 76.72 | 73.06 | 70.91 | 70.07 |
| Days of sales outstanding (DSO) | days | 60.77 | 66.92 | 62.49 | 54.07 | 60.13 | 67.03 | 69.86 | 57.82 | 61.63 | 62.28 | 62.29 | 57.06 | 60.82 | 74.10 | 72.34 | 69.54 | 61.83 | 63.17 | 55.98 | 53.51 |
| Number of days of payables | days | 74.89 | 76.30 | 66.02 | 64.34 | 80.45 | 68.48 | 63.43 | 63.94 | 75.60 | 64.63 | 77.25 | 82.52 | 90.15 | 82.24 | 82.01 | 74.74 | 75.73 | 63.05 | 55.22 | 61.00 |
| Cash conversion cycle | days | 67.26 | 82.27 | 91.37 | 81.11 | 65.70 | 74.12 | 81.88 | 74.22 | 59.80 | 73.93 | 72.21 | 65.47 | 53.05 | 71.75 | 73.81 | 76.99 | 62.82 | 73.18 | 71.67 | 62.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 81.38 + 60.77 – 74.89
= 67.26
The cash conversion cycle of Belden Inc has fluctuated over the periods provided, indicating different efficiencies in managing its cash flow and working capital. The company's cash conversion cycle ranged from a low of 53.05 days on December 31, 2021, to a high of 91.37 days on June 30, 2024. A shorter cash conversion cycle is generally more favorable as it indicates that the company is able to efficiently convert its inventory into cash.
The trend in Belden Inc's cash conversion cycle shows some variability over time, with peaks and troughs observed. This variability may be indicative of changes in the company's operational efficiency and effectiveness in managing its working capital components such as inventory, accounts receivable, and accounts payable.
Overall, Belden Inc should carefully monitor and analyze its cash conversion cycle to identify opportunities for improvement in working capital management. By reducing the cash conversion cycle, the company can enhance its liquidity, streamline its operations, and potentially improve its overall financial performance.
Peer comparison
Dec 31, 2024