Fortune Brands Innovations Inc. (FBIN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 118.24 | 88.44 | 88.45 | 92.23 | 89.38 | 93.16 | 105.72 | 112.29 | 133.61 | 192.22 | 182.42 | 169.28 | 114.30 | 129.89 | 109.69 | 95.82 | 80.63 | 70.68 | 72.71 | 68.39 |
| Days of sales outstanding (DSO) | days | 40.74 | 43.48 | 45.40 | 47.87 | 42.15 | 45.94 | 50.04 | — | 40.33 | 71.05 | 74.63 | 76.00 | 67.33 | 64.18 | 54.81 | 52.40 | 44.04 | 47.33 | 42.06 | 42.39 |
| Number of days of payables | days | 63.28 | 45.32 | 49.51 | 51.40 | 51.69 | 57.14 | 54.22 | 51.10 | 55.15 | 86.06 | 95.36 | 92.34 | 72.09 | 84.70 | 73.09 | 59.91 | 57.69 | 52.09 | 46.06 | 41.47 |
| Cash conversion cycle | days | 95.70 | 86.60 | 84.35 | 88.70 | 79.84 | 81.97 | 101.54 | 61.19 | 118.78 | 177.21 | 161.68 | 152.94 | 109.54 | 109.37 | 91.41 | 88.32 | 66.98 | 65.92 | 68.71 | 69.31 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 118.24 + 40.74 – 63.28
= 95.70
The cash conversion cycle of Fortune Brands Innovations Inc. has fluctuated over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to September 30, 2021, the company saw a decreasing trend in its cash conversion cycle, indicating an improvement in efficiency in managing its working capital. However, from March 31, 2021, to September 30, 2022, there was a sharp increase in the cash conversion cycle, indicating a potential issue with managing its working capital effectively during that period.
The highest cash conversion cycle was recorded on September 30, 2022, at 177.21 days, suggesting a prolonged time for the company to convert its investments into cash inflows. This may have been due to issues such as slow inventory turnover or delays in collecting receivables.
From March 31, 2023, to December 31, 2024, the company managed to reduce its cash conversion cycle, indicating improved efficiency in working capital management. The lowest cycle was recorded on March 31, 2023, at 61.19 days, reflecting a more streamlined process in converting investments into cash.
Overall, fluctuations in the cash conversion cycle of Fortune Brands Innovations Inc. indicate varying levels of efficiency in managing working capital over the analyzed period. Further analysis of the underlying factors affecting the cycle's movement would provide more insights into the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2024