Bunge Limited (BG)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 47.66 | 47.41 | 48.29 | 55.16 | 67.78 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 47.66 | 47.41 | 48.29 | 55.16 | 67.78 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.66 + — – —
= 47.66
The cash conversion cycle of Bunge Limited has shown a positive trend over the past five years. Starting at 67.78 days on December 31, 2020, it has consistently decreased to 55.16 days by December 31, 2021, further dropping to 48.29 days by December 31, 2022.
The trend continued with a slight decrease to 47.41 days by December 31, 2023, and a marginal increase to 47.66 days by the end of 2024. Overall, the decreasing trend is indicative of an improvement in the company's ability to efficiently manage its working capital, convert inventory into cash, and collect receivables.
A lower cash conversion cycle suggests that Bunge Limited is managing its inventories well, collecting receivables promptly, and managing payables effectively. This efficient management of working capital can positively impact the company's liquidity and overall financial health.
Peer comparison
Dec 31, 2024