Everus Construction Group Inc (ECG)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 6.16 | 5.55 | — |
| Days of sales outstanding (DSO) | days | — | — | — |
| Number of days of payables | days | — | — | — |
| Cash conversion cycle | days | 6.16 | 5.55 | 0.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.16 + — – —
= 6.16
Everus Construction Group Inc's cash conversion cycle has shown an increasing trend over the past three years. The company's cash conversion cycle was 0.00 days in 2021, indicating that it was able to instantly convert its inventory into sales and receive cash from customers efficiently. However, by 2023, the cash conversion cycle had increased to 6.16 days, suggesting a delay in converting inventory into cash.
The increase in the cash conversion cycle may indicate that Everus Construction Group Inc is taking longer to convert its inventory into sales and collect cash from customers. This could be due to slower sales, extended credit terms to customers, or delays in inventory turnover.
Overall, monitoring and managing the cash conversion cycle is crucial for Everus Construction Group Inc to optimize its working capital management and ensure efficient cash flow operations. Further analysis and strategic measures may be necessary to address any underlying issues contributing to the increasing trend in the cash conversion cycle.
Peer comparison
Dec 31, 2023