Benchmark Electronics Inc (BHE)

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	84.69	97.19	100.96	93.19	63.62
Days of sales outstanding (DSO)	days	56.68	57.78	62.21	57.65	55.07
Number of days of payables	days	54.18	52.23	58.86	75.97	54.85
Cash conversion cycle	days	87.19	102.74	104.31	74.87	63.84

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.69 + 56.68 – 54.18
= 87.19

Benchmark Electronics Inc's cash conversion cycle has shown variability over the past five years.

In December 2020, the company had a cash conversion cycle of 63.84 days, indicating that it took approximately 63.84 days for Benchmark Electronics to convert its investments in inventory into cash receipts from customers.

By December 2024, the cash conversion cycle had increased to 87.19 days, suggesting that Benchmark Electronics was taking longer to convert its investment in inventory into cash during this period.

The trend shows an initial increase in the cash conversion cycle from 2020 to 2022, followed by a slight decrease in 2023, but then an increase again in 2024.

This trend indicates that Benchmark Electronics may have experienced challenges in managing its working capital efficiently, which could have impacted its liquidity and operational performance during these years.

Further analysis of the company's inventory management, accounts receivable collection, and accounts payable practices may be necessary to address the fluctuations in the cash conversion cycle and improve overall working capital management.