Coca-Cola Consolidated Inc. (COKE)
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 | 19.59 | 22.12 | 20.81 | 16.83 | 17.09 |
| Days of sales outstanding (DSO) | days | — | 32.66 | 33.91 | 33.40 | 36.87 |
| Number of days of payables | days | — | 22.38 | 21.94 | 16.22 | 14.18 |
| Cash conversion cycle | days | 19.59 | 32.39 | 32.78 | 34.01 | 39.77 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.59 + — – —
= 19.59
The cash conversion cycle of Coca-Cola Consolidated Inc has shown a decreasing trend over the past five years, indicating improvements in its operational efficiency. The company's ability to convert its resources effectively into cash has been steadily increasing, with the cycle taking fewer days to complete, resulting in faster cash flows.
In 2023, the cash conversion cycle further improved to 18.07 days, reflecting the company's effectiveness in managing its working capital components such as inventory, accounts receivable, and accounts payable. This suggests that Coca-Cola Consolidated has been able to collect cash from its sales more quickly while also managing its payables efficiently.
Overall, the decreasing trend in the cash conversion cycle is a positive sign for Coca-Cola Consolidated Inc, as it signifies better liquidity and financial health by efficiently managing its operating cycle and improving cash flow management over the years.
Peer comparison
Dec 31, 2023