Bruker Corporation (BRKR)

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	227.01	243.54	238.40	214.51	241.18
Days of sales outstanding (DSO)	days	65.05	66.23	68.18	62.93	61.58
Number of days of payables	days	49.77	50.98	53.16	44.53	46.89
Cash conversion cycle	days	242.29	258.79	253.42	232.91	255.87

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 227.01 + 65.05 – 49.77
= 242.29

The cash conversion cycle for Bruker Corporation has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was reported at 255.87 days, indicating a relatively lengthy period for converting resources into cash.

Over the subsequent years, Bruker Corporation made some improvements in its cash conversion cycle. By December 31, 2021, the cycle decreased to 232.91 days, suggesting a more efficient management of working capital and cash flow.

However, there was a slight increase in the cash conversion cycle by December 31, 2022, as it rose to 253.42 days. This uptick could indicate potential challenges in converting investments into cash within the expected timeframe.

By December 31, 2023, the cycle extended further to 258.79 days, possibly raising concerns about the company's liquidity and operational efficiency.

In the latest year reported, December 31, 2024, Bruker Corporation managed to reduce its cash conversion cycle to 242.29 days. While this improvement is positive, the company may still need to focus on further optimizing its cash conversion processes to enhance overall financial performance and liquidity.