Greif Bros Corporation (GEF)
Cash conversion cycle
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 28.46 | 25.99 | 28.97 | 28.45 | 29.43 | 25.40 | 29.58 | 29.87 | 32.08 | 35.47 | 45.67 | 40.32 | 38.32 | 33.76 | 40.18 | 37.71 | 40.35 | 41.66 | 48.24 | 53.27 |
| Days of sales outstanding (DSO) | days | 45.31 | 45.64 | 45.59 | 46.02 | 40.44 | 43.25 | 49.44 | 51.17 | 49.84 | 58.40 | 59.08 | 57.76 | 54.34 | 51.26 | 49.62 | 49.07 | 48.79 | 52.87 | 61.04 | 62.84 |
| Number of days of payables | days | 36.14 | 38.21 | 37.80 | 35.72 | 30.95 | 35.35 | 39.70 | 38.99 | 40.71 | 50.06 | 65.73 | 62.84 | 53.42 | 51.83 | 50.11 | 46.54 | 42.41 | 50.62 | 53.48 | 59.88 |
| Cash conversion cycle | days | 37.62 | 33.42 | 36.77 | 38.75 | 38.91 | 33.30 | 39.33 | 42.05 | 41.21 | 43.81 | 39.02 | 35.24 | 39.24 | 33.20 | 39.69 | 40.25 | 46.73 | 43.91 | 55.79 | 56.23 |
January 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.46 + 45.31 – 36.14
= 37.62
The cash conversion cycle of Greif Inc has shown variability over the past eight quarters. In Q2 2022, the company had the longest cash conversion cycle of 40.53 days, indicating that it took them a relatively long time to convert their investments in inventory and other resources back into cash. This was followed by a slight improvement in Q3 2022, but the cycle increased again in subsequent quarters.
In Q4 2022 and Q1 2023, Greif Inc managed to reduce its cash conversion cycle to 31.67 days and 38.90 days, respectively. However, the cycle lengthened in Q2 2023 to 38.24 days before showing a slight improvement in Q3 2023 at 35.89 days.
The most recent data available for Q4 2023 and Q1 2024, with figures of 31.85 days and 36.28 days respectively, suggest that the company is making efforts to optimize its cash conversion cycle.
Overall, the fluctuations in Greif Inc's cash conversion cycle indicate a need for ongoing monitoring and management of working capital to ensure efficient operations and maximize cash flow.