Berry Global Group Inc (BERY)
Cash conversion cycle
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.54 | 54.63 | 54.62 | 53.89 | 49.01 | 53.09 | 55.21 | 54.34 | 49.58 | 53.35 | 53.20 | 56.96 | 55.39 | 54.84 | 52.82 | 52.55 | 45.26 | 46.28 | 53.15 | 62.37 |
| Days of sales outstanding (DSO) | days | 47.54 | 48.72 | 47.26 | 43.74 | 45.07 | 48.83 | — | 42.01 | 44.54 | — | — | — | 49.53 | — | — | — | — | — | — | — |
| Number of days of payables | days | 56.89 | 40.41 | 42.94 | 36.09 | 48.10 | 35.56 | 39.99 | 34.53 | 49.39 | 40.94 | 44.72 | 44.15 | 59.28 | 49.19 | 47.80 | 41.71 | 39.80 | 34.45 | 47.90 | 46.91 |
| Cash conversion cycle | days | 43.19 | 62.94 | 58.93 | 61.54 | 45.98 | 66.36 | 15.22 | 61.82 | 44.74 | 12.41 | 8.48 | 12.81 | 45.63 | 5.66 | 5.01 | 10.84 | 5.46 | 11.83 | 5.25 | 15.46 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.54 + 47.54 – 56.89
= 43.19
The cash conversion cycle (CCC) of Berry Global Group Inc has exhibited some fluctuations over the past eight quarters. The CCC represents the average number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent quarter, ending September 30, 2024, the CCC stood at 43.19 days. This indicates that, on average, it takes Berry Global Group Inc approximately 43 days to convert its investments in inventory and other resources into cash flow from sales. Compared to the previous quarter, the CCC decreased, suggesting an improvement in the efficiency of the company's cash conversion process.
Looking back over the past eight quarters, Berry Global Group Inc's CCC has shown variations, ranging from a low of 5.01 days in March 2021 to a high of 66.36 days in June 2023. Generally, a lower CCC is desirable as it signifies that the company is able to quickly convert its assets into cash, indicating efficient operations.
It is important for Berry Global Group Inc to closely monitor and manage its CCC to ensure optimal cash flow management and operational efficiency. By analyzing the trends and factors influencing the CCC, the company can make informed decisions to enhance its working capital management and overall financial performance.
Peer comparison
Sep 30, 2024