Blackline Inc (BL)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 107.39 | 106.19 | 128.42 | 123.58 | 135.00 |
| Number of days of payables | days | 6.02 | 10.54 | 6.58 | 3.37 | 9.15 |
| Cash conversion cycle | days | 101.37 | 95.65 | 121.84 | 120.20 | 125.85 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 107.39 – 6.02
= 101.37
The cash conversion cycle for Blackline Inc has shown mixed results over the past five years. In 2023, the company's cash conversion cycle was 101.37 days, slightly longer than the previous year's 95.65 days. This indicates that it took Blackline Inc approximately 6 days longer to convert its investments in inventory and accounts receivable into cash in 2023 compared to 2022.
Looking back further, the cash conversion cycle was considerably higher in 2021 at 121.84 days, demonstrating an increase in the time taken to convert its assets into cash. The trend continued from 2020, where the cycle was 120.20 days, and 2019, with the highest recorded cycle of 125.85 days.
Overall, the fluctuating trend in Blackline Inc's cash conversion cycle over the years suggests potential inefficiencies in managing its working capital, particularly in inventory and accounts receivable turnover. The company may need to focus on streamlining its operations to improve its cash conversion efficiency and liquidity management in the future.
Peer comparison
Dec 31, 2023