Coca-Cola Consolidated Inc. (COKE)
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 | 29.08 | 28.98 | 32.34 | 30.63 | 25.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 29.08 | 28.98 | 32.34 | 30.63 | 25.44 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.08 + — – —
= 29.08
The cash conversion cycle of Coca-Cola Consolidated Inc. has shown a fluctuating trend over the years. In December 31, 2020, the company's cash conversion cycle stood at 25.44 days, indicating a relatively efficient conversion of cash into inventory, which is a positive sign. However, by December 31, 2022, the cash conversion cycle had increased to 32.34 days, suggesting a longer period for the company to convert its investments in inventory back into cash.
It is worth noting that in December 31, 2023, the cash conversion cycle improved slightly to 28.98 days, indicating a more efficient management of cash flow and inventory. By December 31, 2024, the cycle increased slightly to 29.08 days. Overall, the trend suggests some variability in the company's ability to manage its cash flow and inventory effectively over the years.
Analyzing the cash conversion cycle can provide insights into a company's operational efficiency and effectiveness in managing its working capital. A lower cash conversion cycle implies that the company is able to generate cash quickly from its operations, while a longer cycle may indicate inefficiencies in managing cash flow and working capital. It is essential for Coca-Cola Consolidated Inc. to closely monitor its cash conversion cycle and make necessary adjustments to enhance its operational performance and financial health.
Peer comparison
Dec 31, 2024