BJs Restaurants Inc (BJRI)
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 | 13.29 | 4.18 | 3.81 | 4.41 | 5.39 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 13.29 | 4.18 | 3.81 | 4.41 | 5.39 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 13.29 + — – —
= 13.29
The cash conversion cycle of BJs Restaurants Inc has shown fluctuations over the past five years. In December 2020, the company had a cash conversion cycle of 5.39 days, which decreased to 4.41 days by December 2021, indicating an improvement in the efficiency of managing cash flows. Subsequently, by December 2022, the cash conversion cycle further improved to 3.81 days, reflecting a faster conversion of inventory and receivables into cash.
However, in December 2023, there was a slight increase in the cash conversion cycle to 4.18 days, suggesting a temporary slowdown in the efficiency of the cash conversion process. The most significant change occurred by December 2024, with the cash conversion cycle increasing substantially to 13.29 days, indicating a prolonged period for the company to convert its investments in inventory and receivables back into cash.
Overall, fluctuations in the cash conversion cycle of BJs Restaurants Inc over the five-year period suggest varying levels of efficiency in managing working capital and cash flows, which may require further analysis to determine the underlying reasons for these changes and to consider potential strategies for improvement.
Peer comparison
Dec 31, 2024