Greenbrier Companies Inc (GBX)
Cash conversion cycle
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.23 | 85.82 | 111.38 | 138.08 | 79.24 |
| Days of sales outstanding (DSO) | days | 4.64 | 3.91 | 4.88 | 23.42 | 1.19 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 98.87 | 89.72 | 116.26 | 161.49 | 80.43 |
August 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.23 + 4.64 – —
= 98.87
The cash conversion cycle of Greenbrier Companies Inc has varied over the past five years. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.
In the recent year ending August 31, 2024, the cash conversion cycle stood at 98.87 days, indicating an improvement from the previous year's figure of 89.72 days. This suggests that the company has been more efficient in managing its cash flow during this period.
Looking back, in the year ending August 31, 2023, Greenbrier Companies Inc had a cash conversion cycle of 89.72 days, which was lower than the cycle observed in the year ending August 31, 2022 (116.26 days) and the year ending August 31, 2021 (161.49 days). However, the cycle in 2023 was higher than that in the year ending August 31, 2020, which was 80.43 days.
Overall, the trend in Greenbrier's cash conversion cycle shows fluctuations over the past five years, potentially indicating varying efficiencies in managing inventory, receivables, and payables. The company should continue to monitor and possibly streamline its working capital management to maintain a healthy cash conversion cycle.
Peer comparison
Aug 31, 2024