Berry Global Group Inc (BERY)

Cash conversion cycle

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Days of inventory on hand (DOH)	days	49.02	49.60	55.37	43.85	66.57
Days of sales outstanding (DSO)	days	45.20	44.75	49.53	45.85	62.74
Number of days of payables	days	48.10	49.40	59.26	38.56	58.28
Cash conversion cycle	days	46.11	44.95	45.64	51.14	71.03

September 30, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 49.02 + 45.20 – 48.10
= 46.11

The cash conversion cycle of Berry Global Group Inc has shown a mixed trend over the past five years. In September 2023, the company's cash conversion cycle stood at 46.21 days, representing a slight increase from the previous year. This metric measures the time it takes for the company to convert its investments in inventory and other resources into cash receipts from sales.

In the context of Berry Global, the trend in the cash conversion cycle indicates that the company has made some improvements in managing its working capital efficiency compared to the previous years. However, there remains an opportunity for the company to further streamline its working capital management in order to optimize cash flow and liquidity.

Overall, this analysis suggests that Berry Global Group Inc has been moderately effective in managing the cash conversion cycle, but there may be room for further improvement in optimizing its working capital efficiency.