Geo Group Inc (GEO)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 28.94 | 22.90 | 9.68 | 27.95 | 73.54 |
| Days of sales outstanding (DSO) | days | 30.87 | 33.04 | 30.26 | 28.81 | 32.61 |
| Number of days of payables | days | 74.31 | 87.75 | 68.89 | 89.75 | 114.35 |
| Cash conversion cycle | days | -14.49 | -31.81 | -28.95 | -32.98 | -8.19 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.94 + 30.87 – 74.31
= -14.49
The cash conversion cycle of Geo Group, Inc. has shown some fluctuations over the past five years. The company's cash conversion cycle decreased from 65.13 days in 2019 to 57.30 days in 2020, indicating an improvement in managing cash flows. However, there was a slight increase in the cash conversion cycle to 60.18 days in 2021 before rising further to 63.95 days in 2022.
In 2023, the cash conversion cycle decreased to 58.99 days, showing some improvement in the company's ability to convert its investments in inventory and accounts receivable into cash. Overall, Geo Group, Inc. has been somewhat effective in managing its working capital and cash flow operations, but there may be room for further optimization to shorten the cash conversion cycle and enhance liquidity.
Peer comparison
Dec 31, 2023