Berry Global Group Inc (BERY)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.54 | 49.02 | 49.60 | 55.37 | 43.85 |
| Days of sales outstanding (DSO) | days | 47.76 | 45.20 | 44.75 | 49.53 | 45.85 |
| Number of days of payables | days | 56.89 | 48.10 | 49.40 | 59.26 | 38.56 |
| Cash conversion cycle | days | 43.41 | 46.11 | 44.95 | 45.64 | 51.14 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.54 + 47.76 – 56.89
= 43.41
The cash conversion cycle of Berry Global Group Inc has shown fluctuations over the past five years. In the most recent fiscal year ending September 30, 2024, the company's cash conversion cycle was 43.41 days, indicating an improvement from the previous year. This suggests that the company was able to manage its operating cycle more efficiently, possibly by reducing the time it takes to convert inventory into sales and then into cash.
Compared to the data from the previous years, there was a decrease in the cash conversion cycle, which is a positive sign for the company's working capital management. In fiscal year 2023, the cash conversion cycle was 46.11 days, showing a slight increase compared to the current year. The trend continued in fiscal year 2022 and 2021, with the cash conversion cycle standing at 44.95 days and 45.64 days, respectively.
In the earliest year provided, fiscal year 2020, Berry Global Group Inc had a higher cash conversion cycle of 51.14 days. This indicates that the company has made progress in improving its efficiency in managing cash flows and working capital over the years.
Overall, the downward trend in the cash conversion cycle is a positive indicator of the company's ability to efficiently manage its working capital and convert investment in inventory into cash. However, it is essential for Berry Global Group Inc to continue monitoring and optimizing its operating cycle to ensure sustained financial health and liquidity.
Peer comparison
Sep 30, 2024