Fluor Corporation (FLR)
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 | — | — | — | — | — | — | — | — | — | — | — | — | 25.95 | 24.68 | 24.02 | 24.92 | 5.69 | 8.74 | 28.85 | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 25.95 | 24.68 | 24.02 | 24.92 | 5.69 | 8.74 | 28.85 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Looking at the data provided for Fluor Corporation, we observe variations in the cash conversion cycle over different quarters. In March, June, September, and December 2020, the cash conversion cycle ranged from 5.69 to 28.85 days, indicating fluctuations in the company's efficiency in managing its working capital during that period.
Subsequently, in the following quarters up to December 2021, the cash conversion cycle remained relatively stable, hovering around 24-25 days. This suggests that Fluor Corporation maintained a consistent pace in converting its working capital into cash during this period.
Moreover, from March to June 2022, the cash conversion cycle dropped to 0 days and continued at that level for the subsequent quarters up to December 2024. This could indicate that Fluor Corporation significantly improved its working capital management efficiency, potentially streamlining its operations to enhance cash flow generation and liquidity.
In conclusion, the analysis of Fluor Corporation's cash conversion cycle reflects fluctuations in working capital efficiency in the past, followed by a notable improvement in recent quarters, as demonstrated by the reduction to a 0-day cycle from March 2022 onwards.
Peer comparison
Dec 31, 2024