CoreCivic Inc (CXW)
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 | — | 27.66 | 23.38 | 329.27 | 35.62 |
| Days of sales outstanding (DSO) | days | 60.08 | 61.80 | 55.42 | 51.28 | 51.74 |
| Number of days of payables | days | 101.47 | 130.16 | 120.54 | 94.75 | 109.17 |
| Cash conversion cycle | days | -41.40 | -40.71 | -41.74 | 285.80 | -21.80 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 60.08 – 101.47
= -41.40
CoreCivic Inc's cash conversion cycle has shown some variability over the past five years. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales and then back into cash through collection of accounts receivable.
In 2023, the cash conversion cycle increased slightly to 60.08 days from 61.80 days in 2022, indicating that it took CoreCivic Inc slightly longer to convert its investments into cash during this period. Despite the uptick, the company's management of inventory and accounts receivable continued to be efficient compared to previous years.
Looking back at 2021 and 2020, the cash conversion cycle was relatively stable, with values of 55.42 days and 51.28 days respectively. This suggests that CoreCivic Inc's working capital management remained consistent during this period.
In 2019, however, the cash conversion cycle was slightly higher at 51.74 days compared to 2020 and 2021. This might indicate that the company faced some challenges in managing its working capital efficiently that year.
Overall, CoreCivic Inc has generally maintained a reasonable level of efficiency in converting its investments into cash over the past five years, with some fluctuations from year to year. Monitoring and potentially optimizing the cash conversion cycle further could help the company improve its working capital management and ultimately enhance its overall financial performance.
Peer comparison
Dec 31, 2023