Fluor Corporation (FLR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 0.03 | 25.95 | 5.67 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.03 | 25.95 | 5.67 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Based on the provided data, Fluor Corporation's cash conversion cycle has exhibited significant fluctuations over the years. In December 31, 2020, the company had a relatively efficient cash conversion cycle of 5.67 days, indicating that it was able to convert its investments in inventory and accounts receivable into cash relatively quickly.
However, there was a noticeable deterioration in the cash conversion cycle by December 31, 2021, where it increased to 25.95 days. This marked increase suggests that Fluor Corporation took longer to convert its investments into cash during this period, possibly facing challenges in managing its inventory or collecting receivables.
The subsequent years, December 31, 2022, December 31, 2023, and December 31, 2024, show a significant improvement in the cash conversion cycle, with the company achieving remarkably low values of 0.03 days, 0.00 days, and 0.00 days, respectively. These extremely low figures indicate that Fluor Corporation was able to convert its investments into cash almost immediately, reflecting a very efficient cash conversion cycle during these periods.
Overall, the fluctuation in Fluor Corporation's cash conversion cycle over the years highlights the importance of effective working capital management in influencing the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2024