Belden Inc (BDC)
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 | 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 | 63.12 | 80.11 | 84.92 | 89.23 |
| Days of sales outstanding (DSO) | days | 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 | 57.31 | 78.70 | 76.48 | 68.15 |
| Number of days of payables | days | 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 | 73.25 | 75.95 | 73.18 | 70.16 |
| Cash conversion cycle | days | 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 | 47.18 | 82.86 | 88.22 | 87.21 |
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 fluctuations over the past eight quarters. In Q2 2022, the company had the shortest cash conversion cycle of 63.55 days, indicating efficient management of cash flow and working capital. However, this cycle increased in subsequent quarters to reach a peak of 81.88 days in Q2 2023, before decreasing to 65.70 days in Q4 2023.
A shorter cash conversion cycle generally signifies that the company is able to convert its inventory and accounts receivable into cash quickly, which is a positive indicator of operational efficiency. Conversely, a longer cycle may indicate inefficiencies in managing working capital and cash flow.
Overall, Belden Inc should continue to monitor and potentially improve its cash conversion cycle to ensure optimal utilization of resources and enhance its financial performance.
Peer comparison
Dec 31, 2023