BWX Technologies Inc (BWXT)
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 | 5.33 | 4.97 | 3.78 | 3.54 | 4.59 |
| Days of sales outstanding (DSO) | days | 12.89 | 10.13 | 12.32 | 26.74 | 11.14 |
| Number of days of payables | days | 24.65 | 27.60 | 44.03 | 43.47 | 45.77 |
| Cash conversion cycle | days | -6.42 | -12.50 | -27.93 | -13.19 | -30.04 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.33 + 12.89 – 24.65
= -6.42
The cash conversion cycle for BWX Technologies Inc has shown significant fluctuations over the past five years. In 2023, the company's cash conversion cycle improved to -3.93 days, indicating that it takes a relatively short time for the company to convert its investments in inventory and other resources into cash inflows. This could suggest efficient management of working capital and a quicker turnaround of assets into cash.
Comparing this to 2022, where the cash conversion cycle was -5.33 days, there was further improvement in managing working capital efficiency. The company was able to reduce the time taken to convert its resources into cash compared to the previous year.
In contrast, the cash conversion cycle was notably worse in 2021 and 2019, at -20.17 days and -23.27 days respectively, indicating a longer period required to convert investments into cash. This may suggest potential challenges in managing working capital efficiently or delays in converting assets into cash.
Overall, the recent improvements in the cash conversion cycle for BWX Technologies Inc demonstrate a positive trend towards more efficient working capital management, potentially leading to improved cash flows and liquidity. Monitoring and sustaining this trend over time can be crucial for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023