Greenbrier Companies Inc (GBX)
Cash conversion cycle
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 93.49 | 92.32 | 85.82 | 94.34 | 102.49 | 111.44 | 111.38 | 121.45 | 132.48 | 139.07 | 138.08 | 127.41 | 102.37 | 84.25 | 79.24 | 93.02 | 94.29 | 95.24 | 90.96 | 87.51 |
| Days of sales outstanding (DSO) | days | 2.05 | 0.96 | 3.91 | 2.81 | 2.25 | 3.30 | 4.88 | 17.99 | 16.95 | 20.45 | 23.42 | 15.36 | 10.81 | — | 1.19 | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 95.54 | 93.28 | 89.72 | 97.15 | 104.75 | 114.74 | 116.26 | 139.43 | 149.43 | 159.52 | 161.49 | 142.77 | 113.18 | 84.25 | 80.43 | 93.02 | 94.29 | 95.24 | 90.96 | 87.51 |
February 29, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 93.49 + 2.05 – —
= 95.54
The cash conversion cycle of Greenbrier Companies Inc has shown some fluctuations over the past few periods. The cash conversion cycle, which represents the time it takes for a company to convert its investment in inventory into cash flows from sales, stood at 95.54 days as of February 29, 2024. This indicates that Greenbrier takes approximately 95.54 days to sell its inventory, collect receivables, and pay its suppliers.
Looking at the trend over the past few periods, we can see that the cash conversion cycle has been fluctuating, ranging from a low of 80.43 days on August 31, 2020, to a high of 161.49 days on November 30, 2021. The fluctuations suggest that the company may be experiencing variability in its inventory turnover, accounts receivable collection, and accounts payable payment periods.
It is important for Greenbrier to keep a close eye on its cash conversion cycle and work towards optimizing it to ensure efficient management of working capital. A lower cash conversion cycle indicates that the company is able to generate cash more quickly from its operating cycle, which can lead to improved liquidity and financial health. By actively managing its inventory levels, receivables collection, and payables terms, Greenbrier can strive to reduce its cash conversion cycle and enhance its overall financial performance.
Peer comparison
Feb 29, 2024