BJs Restaurants Inc (BJRI)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.80 | 5.12 | 4.25 | 4.35 | 4.61 | 4.79 | 4.92 | 4.95 | 5.45 | 5.80 | 6.17 | 6.98 | 6.81 | 5.67 | 5.56 | 4.84 | 5.00 | 4.78 | 4.89 | 5.00 |
| Days of sales outstanding (DSO) | days | 5.35 | 4.96 | 8.97 | 5.46 | 8.13 | 5.91 | 6.95 | 7.60 | 9.80 | 9.02 | 10.09 | 11.67 | 11.12 | 5.86 | 5.96 | 4.38 | 6.98 | 5.04 | 5.66 | 4.99 |
| Number of days of payables | days | 21.95 | 17.51 | 19.09 | 18.39 | 23.11 | 20.81 | 20.00 | 21.34 | 22.98 | 21.19 | 24.44 | 27.78 | 24.10 | 21.98 | 22.75 | 13.12 | 10.55 | 13.31 | 15.28 | 15.42 |
| Cash conversion cycle | days | -11.81 | -7.43 | -5.87 | -8.58 | -10.38 | -10.11 | -8.13 | -8.79 | -7.73 | -6.37 | -8.18 | -9.12 | -6.17 | -10.44 | -11.24 | -3.90 | 1.42 | -3.49 | -4.73 | -5.43 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.80 + 5.35 – 21.95
= -11.81
The cash conversion cycle of BJs Restaurants Inc has exhibited fluctuations over the period analyzed. For the most recent quarter, ending on December 31, 2023, the cash conversion cycle was -11.81 days, indicating a negative cycle, which implies efficient management of cash flow. This suggests that BJs Restaurants Inc is able to convert its inventory to sales and collect receivables faster than it pays its suppliers, leading to a shorter cash conversion cycle.
Looking at the trend over the past five quarters, BJs Restaurants Inc has managed to maintain a negative cash conversion cycle, with the cycle improving from -5.43 days on March 31, 2019, to -11.81 days on December 31, 2023. This improvement indicates that the company has been able to streamline its operations and effectively manage its working capital.
It is worth noting that a negative cash conversion cycle can be advantageous for a company as it signifies efficient operations and effective management of cash flows. However, it is essential for BJs Restaurants Inc to monitor and sustain this trend to ensure continued financial health and operational efficiency.
Peer comparison
Dec 31, 2023