Coca-Cola Consolidated Inc. (COKE)
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 | 19.60 | 19.67 | 20.70 | 21.13 | 22.12 | 20.26 | 20.01 | 18.66 | 20.83 | 16.96 | 17.09 | 19.13 | 16.90 | 15.72 | 16.00 | 17.10 | 17.10 | 17.66 | 17.77 | 16.97 |
| Days of sales outstanding (DSO) | days | — | — | — | 33.67 | 32.63 | 35.80 | — | — | 33.88 | — | — | — | 33.23 | 36.14 | 37.80 | 38.40 | 36.75 | 38.11 | 40.22 | 37.01 |
| Number of days of payables | days | — | — | — | 19.44 | 22.39 | 20.89 | — | — | 21.96 | — | — | — | 16.28 | 17.75 | 16.38 | 15.68 | 14.19 | 14.61 | 13.96 | 12.98 |
| Cash conversion cycle | days | 19.60 | 19.67 | 20.70 | 35.35 | 32.37 | 35.17 | 20.01 | 18.66 | 32.75 | 16.96 | 17.09 | 19.13 | 33.84 | 34.11 | 37.42 | 39.82 | 39.66 | 41.16 | 44.03 | 41.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.60 + — – —
= 19.60
The cash conversion cycle of Coca-Cola Consolidated Inc has shown some fluctuation over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 18.07 days, which was slightly higher compared to the previous quarter's figure of 17.04 days. This indicates that the company took slightly longer to convert its investments in inventory into cash during this period.
Looking at the trend over the past year, the cash conversion cycle reached its peak in Q1 2023 at 21.66 days, reflecting a longer period required to convert inventory into cash. Subsequently, there was a decrease in the cycle in Q2 and Q3 2023 to 18.85 days and 17.04 days, respectively, before showing a slight increase in Q4 2023.
Comparing the data to the same quarters of the previous year, there seems to be some variability as well. For instance, in Q4 2023, the cash conversion cycle of 18.07 days was slightly lower than that of Q4 2022 at 20.16 days.
Overall, while the cash conversion cycle of Coca-Cola Consolidated Inc has experienced fluctuations, it is essential for the company to continue monitoring and managing this metric effectively to ensure efficient utilization of its working capital and cash flow management.
Peer comparison
Dec 31, 2023