BWX Technologies Inc (BWXT)
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 | 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 | 4.59 | 4.91 | 4.63 | 4.36 |
| Days of sales outstanding (DSO) | days | 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 | 9.06 | 11.54 | 11.36 | 10.99 |
| Number of days of payables | days | 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 | 45.77 | 33.73 | 30.71 | 28.25 |
| Cash conversion cycle | days | -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 | -32.12 | -17.28 | -14.72 | -12.89 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.33 + 12.83 – 24.65
= -6.48
The cash conversion cycle of BWX Technologies Inc fluctuated over the past eight quarters, ranging from -7.49 days to -0.21 days. A negative cash conversion cycle indicates that the company is efficiently managing its cash flows.
In Q4 2023, the cash conversion cycle was -3.93 days, showing a slight decrease compared to the previous quarter. This suggests that the company was able to convert its investments in inventory into cash at a faster rate during this period.
Similarly, in Q2 2023, the cash conversion cycle was at its lowest point at -6.48 days, indicating effective management of cash conversion processes. However, in Q3 2022 and Q1 2022, the cash conversion cycle was less efficient at -1.90 days and -6.53 days, respectively.
Overall, BWX Technologies Inc has shown a consistent ability to efficiently convert its inventory into cash over the past eight quarters. This indicates strong working capital management and potentially efficient operations within the company.
Peer comparison
Dec 31, 2023