Greif Bros Corporation (GEF)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.46 | 33.31 | 35.86 | 36.29 | 33.31 | 30.35 | 33.49 | 32.62 | 33.48 | 29.07 | 33.84 | 34.27 | 37.10 | 40.83 | 40.53 | 35.70 | 33.62 | 29.77 | 35.02 | 32.96 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 34.46 | 33.31 | 35.86 | 36.29 | 33.31 | 30.35 | 33.49 | 32.62 | 33.48 | 29.07 | 33.84 | 34.27 | 37.10 | 40.83 | 40.53 | 35.70 | 33.62 | 29.77 | 35.02 | 32.96 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.46 + — – —
= 34.46
Based on the data provided, Greif Bros Corporation's cash conversion cycle has shown some fluctuation over the past few years. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
Analyzing the trend, we observe that the cash conversion cycle ranged between approximately 29.07 days to 40.83 days over the reported periods. A lower number of days indicates that the company is managing its working capital more efficiently.
The cycle peaked at 40.83 days on October 31, 2021, and July 31, 2021, which indicates that the company took longer to convert its investments in inventory into cash during those periods. This could be due to various factors, such as increased inventory levels or delays in collecting receivables.
On the other hand, the lowest point in the cycle was observed on October 31, 2022, at 29.07 days, suggesting that the company was able to streamline its cash conversion process during that period.
Analyzing the overall trend, it appears that Greif Bros Corporation has managed to keep its cash conversion cycle relatively consistent and within a reasonable range, which indicates a certain level of efficiency in managing its working capital. However, the company should continue to monitor and improve this metric to ensure optimal cash flow management and operational efficiency.