Benchmark Electronics Inc (BHE)

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	84.69	87.86	88.39	91.44	97.19	100.82	103.01	105.85	100.96	108.03	104.14	102.59	93.19	89.58	79.35	69.32	63.62	68.56	69.67	61.72
Days of sales outstanding (DSO)	days	56.68	50.50	49.94	54.03	57.78	60.33	59.96	57.25	62.21	63.17	63.44	58.44	57.65	53.38	50.52	49.50	55.07	54.90	53.37	53.40
Number of days of payables	days	54.18	53.76	51.01	49.96	52.23	53.12	56.84	57.37	58.86	75.57	78.23	77.11	75.97	75.12	72.63	63.48	54.85	54.90	58.35	57.58
Cash conversion cycle	days	87.19	84.60	87.32	95.51	102.74	108.03	106.13	105.73	104.31	95.63	89.35	83.92	74.87	67.84	57.24	55.34	63.84	68.55	64.69	57.54

December 31, 2024 calculation

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

The cash conversion cycle of Benchmark Electronics Inc has shown fluctuations over the reported periods. The cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, started at 57.54 days on March 31, 2020, and increased to 108.03 days by September 30, 2023. However, it decreased to 87.19 days by December 31, 2024.

A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital, turning inventory into sales and collecting cash quickly. On the other hand, a longer cycle may indicate potential inefficiencies in the company's operations or difficulties in collecting receivables.

Benchmark Electronics Inc should closely monitor its cash conversion cycle to identify areas for improvement in inventory management, accounts receivable collection, and payment of accounts payable to enhance its liquidity and operational efficiency.