Bunge Limited (BG)
Cash conversion cycle
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 47.66 | 53.49 | 56.57 | 51.60 | 47.41 | 48.46 | 53.98 | 51.85 | 48.29 | 46.48 | 62.63 | 68.38 | 55.16 | 56.80 | 64.60 | 75.90 | 67.78 | 63.54 | 56.41 | 49.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 47.66 | 53.49 | 56.57 | 51.60 | 47.41 | 48.46 | 53.98 | 51.85 | 48.29 | 46.48 | 62.63 | 68.38 | 55.16 | 56.80 | 64.60 | 75.90 | 67.78 | 63.54 | 56.41 | 49.62 |
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 exhibited some fluctuations over the recent quarters. The cash conversion cycle is a key metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to September 30, 2021, the cash conversion cycle experienced an increasing trend, reaching its peak of 75.90 days on March 31, 2021. This indicates that Bunge Limited took longer to convert its investments in inventory into cash during this period.
However, from September 30, 2021, to September 30, 2022, there was a significant improvement in the cash conversion cycle, with the days reducing to 46.48 days on September 30, 2022. This implies that the company became more efficient in managing its working capital and converting inventory into cash during this period.
Subsequently, from September 30, 2022, to December 31, 2024, the cash conversion cycle showed some fluctuations but generally remained below 60 days. This suggests that Bunge Limited was able to maintain a decent level of efficiency in managing its working capital and cash conversion process during these quarters.
Overall, the trend in Bunge Limited's cash conversion cycle indicates periods of both challenges and improvements in managing working capital efficiency and converting investments into cash flows. It is essential for the company to continue monitoring and optimizing its cash conversion cycle to ensure effective management of liquidity and operational performance.
Peer comparison
Dec 31, 2024