Greif Bros Corporation (GEF)
Cash conversion cycle
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 33.31 | 30.35 | 29.07 | 40.83 | 29.77 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 33.31 | 30.35 | 29.07 | 40.83 | 29.77 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 33.31 + — – —
= 33.31
Greif Bros Corporation's cash conversion cycle has fluctuated over the past five years. The company's cash conversion cycle was 29.77 days on October 31, 2020, increased to 40.83 days on October 31, 2021, then decreased to 29.07 days on October 31, 2022. Subsequently, it slightly increased to 30.35 days on October 31, 2023, and further to 33.31 days on October 31, 2024.
A shorter cash conversion cycle indicates that Greif Bros is more efficient at managing its cash flow and working capital, as it takes less time to convert its investments in inventory and accounts receivable into cash. Nonetheless, the slight increase in the cash conversion cycle in the last two years may suggest a slowdown in the company's ability to convert its assets into cash rapidly.
Further analysis and comparison with industry benchmarks may provide insights into whether the company's cash conversion cycle performance is favorable or requires improvement to enhance operational efficiency and liquidity management.