Bloomin Brands Inc (BLMN)
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 | 7.81 | 6.70 | 6.87 | 6.11 | 7.18 | 6.81 | 6.04 | 6.60 | 7.76 | 8.37 | 8.11 | 7.12 | 8.52 | 8.16 | 7.10 | 7.14 | 7.97 | 7.19 | 7.41 | 7.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 7.81 | 6.70 | 6.87 | 6.11 | 7.18 | 6.81 | 6.04 | 6.60 | 7.76 | 8.37 | 8.11 | 7.12 | 8.52 | 8.16 | 7.10 | 7.14 | 7.97 | 7.19 | 7.41 | 7.27 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.81 + — – —
= 7.81
The cash conversion cycle of Bloomin Brands Inc shows fluctuations over the years, ranging from as low as 6.04 days to as high as 8.52 days. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
A lower cash conversion cycle is generally favorable as it indicates that the company is able to efficiently manage its working capital, turn inventory into cash, and collect receivables quickly. Bloomin Brands Inc generally maintained a relatively low cash conversion cycle throughout the period, with the lowest being 6.04 days in June 2023.
However, there were some periods where the cash conversion cycle increased, indicating possible inefficiencies in working capital management. For example, in December 2021 and June 2022, the cash conversion cycle exceeded 8 days, suggesting a longer time to convert investments into cash.
Overall, analyzing the trends in the cash conversion cycle can provide insights into the company's operational efficiency, working capital management, and liquidity position. Bloomin Brands Inc should aim to consistently improve its cash conversion cycle to optimize its cash flows and enhance overall financial performance.
Peer comparison
Dec 31, 2024