Fluor Corporation (FLR)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | 23.57 | 23.16 | 24.57 | 26.16 | 6.31 | 9.17 | 28.17 | — | — | 22.09 | — | — |
| Days of sales outstanding (DSO) | days | 26.82 | 27.89 | 28.28 | 27.63 | 29.45 | 27.87 | 27.71 | 27.05 | 24.03 | 22.17 | 23.68 | 22.80 | 30.46 | 25.85 | 25.41 | 23.74 | 22.66 | 22.65 | 33.86 | 31.77 |
| Number of days of payables | days | 29.55 | 29.48 | 28.61 | 27.49 | 27.73 | 30.52 | 29.62 | 28.17 | 33.64 | 30.50 | 29.82 | 30.09 | 29.62 | 33.48 | 33.68 | 31.67 | 32.78 | 26.51 | 26.48 | 26.67 |
| Cash conversion cycle | days | -2.73 | -1.59 | -0.34 | 0.13 | 1.73 | -2.66 | -1.91 | -1.12 | 13.96 | 14.84 | 18.42 | 18.86 | 7.15 | 1.54 | 19.91 | -7.93 | -10.12 | 18.23 | 7.38 | 5.10 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 26.82 – 29.55
= -2.73
The cash conversion cycle for Fluor Corporation fluctuated over the past eight quarters, ranging from negative 2.73 days to a positive 1.73 days. A negative cash conversion cycle indicates that the company is able to convert its investments in raw materials and production back into cash quickly, which is generally favorable.
In Q1 2023, the cash conversion cycle was 0.14 days, suggesting that Fluor Corporation efficiently managed its cash flows, with a short period between paying for production costs and receiving cash from sales. However, in Q4 2022, the company's cash conversion cycle was 1.73 days, indicating a slight delay in the conversion of investments into cash.
It is worth noting that in Q2 and Q3 of 2022, the company experienced substantial negative cash conversion cycles, indicating a rapid turnaround from investment to cash generation during those periods. Overall, the trend suggests that Fluor Corporation has generally maintained an effective cash conversion cycle, with occasional fluctuations in efficiency.
Peer comparison
Dec 31, 2023