Bruker Corporation (BRKR)

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	243.54	244.13	254.23	248.40	238.40	223.43	226.89	221.18	214.51	226.50	233.02	234.21	241.18	244.99	233.33	214.92	195.56	203.08	210.44	195.80
Days of sales outstanding (DSO)	days	66.23	73.52	70.82	65.69	68.18	61.37	59.35	61.44	62.93	57.50	54.32	56.18	61.58	61.44	60.14	58.38	63.79	64.63	64.42	68.32
Number of days of payables	days	50.98	48.37	52.48	56.75	53.16	47.01	46.31	48.19	44.53	43.61	45.51	50.91	46.89	40.10	41.80	43.64	40.12	40.36	43.78	45.72
Cash conversion cycle	days	258.79	269.28	272.57	257.34	253.42	237.79	239.94	234.44	232.91	240.39	241.83	239.48	255.87	266.33	251.66	229.66	219.23	227.35	231.08	218.41

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 243.54 + 66.23 – 50.98
= 258.79

Bruker Corp's cash conversion cycle, a measure of how efficiently the company manages its working capital, has fluctuated over the past eight quarters. The trend shows that the company's cash conversion cycle has ranged from 234.44 days to 282.75 days.

In the most recent quarter, Q4 2023, the cash conversion cycle was 253.14 days, indicating the number of days it takes for Bruker Corp to convert its investments in inventory into cash receipts from its customers. This suggests that the company is maintaining a reasonable balance between its inventory turnover, accounts receivable collection, and accounts payable payment periods.

Despite some quarterly variations, it is essential for Bruker Corp to continue monitoring and managing its cash conversion cycle effectively. A lower cash conversion cycle is generally preferred as it signifies a more efficient use of the company's working capital, potentially leading to improved liquidity and profitability. However, fluctuations in the cycle should be assessed in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of Bruker Corp's overall financial performance and operational efficiency.