BWX Technologies Inc (BWXT)
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 | 7.18 | 6.13 | 5.66 | 7.69 | 5.33 | 6.40 | 6.24 | 6.41 | 4.97 | 6.99 | 5.89 | 3.82 | 3.78 | 3.52 | 3.47 | 3.28 | 3.54 | 3.17 | 2.96 | 2.92 |
| Days of sales outstanding (DSO) | days | 20.64 | 14.49 | 15.12 | 14.30 | 12.83 | 18.87 | 10.22 | 11.68 | 10.05 | 12.15 | 14.60 | 10.25 | 12.31 | 10.12 | 10.70 | 10.14 | 26.66 | 15.24 | 11.66 | 11.54 |
| Number of days of payables | days | 28.17 | 28.15 | 28.79 | 27.47 | 24.65 | 30.66 | 29.86 | 29.42 | 27.60 | 32.21 | 33.77 | 32.48 | 44.03 | 32.60 | 33.73 | 34.64 | 43.47 | 39.66 | 34.90 | 31.21 |
| Cash conversion cycle | days | -0.35 | -7.52 | -8.01 | -5.48 | -6.48 | -5.39 | -13.40 | -11.32 | -12.58 | -13.07 | -13.28 | -18.42 | -27.94 | -18.95 | -19.57 | -21.22 | -13.28 | -21.25 | -20.28 | -16.75 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.18 + 20.64 – 28.17
= -0.35
The cash conversion cycle of BWX Technologies Inc has shown a generally decreasing trend over the years, indicating efficiency in managing its cash flows and working capital. The company has consistently achieved negative cash conversion cycle days, reflecting its ability to convert its inventory and accounts receivable into cash quickly while delaying payment to suppliers.
From March 31, 2020, to December 31, 2024, the cash conversion cycle fluctuated between -27.94 days and -0.35 days, with the most notable improvements occurring in 2021 and 2022. The negative values demonstrate that BWX Technologies Inc is effectively managing its operational activities and optimizing cash utilization within its supply chain.
It is important to note that a negative cash conversion cycle indicates that the company is efficiently managing its working capital and operating cycle, potentially leading to improved liquidity and cash flow management. However, further analysis of the company's financial health and operational efficiency would be necessary to provide a comprehensive assessment of its overall performance.
Peer comparison
Dec 31, 2024