Geo Group Inc (GEO)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 28.94 | — | — | — | 22.90 | — | — | — | 7.91 | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 30.88 | 28.18 | 27.81 | 27.53 | 33.02 | 31.73 | 30.85 | 29.93 | 30.22 | 54.22 | 51.19 | 55.96 | 58.20 | 59.85 | 55.90 | 57.97 | 66.76 | 59.11 | 63.08 | 68.37 |
| Number of days of payables | days | 74.31 | 77.18 | 83.48 | 87.89 | 87.75 | 78.11 | 86.77 | 85.87 | 56.29 | 56.85 | 63.99 | 73.29 | 89.75 | 103.69 | 96.96 | 104.33 | 114.35 | 110.18 | 105.09 | 107.92 |
| Cash conversion cycle | days | -14.49 | -49.00 | -55.67 | -60.36 | -31.82 | -46.37 | -55.93 | -55.94 | -18.16 | -2.63 | -12.80 | -17.33 | -31.54 | -43.84 | -41.06 | -46.36 | -47.58 | -51.06 | -42.01 | -39.55 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.94 + 30.88 – 74.31
= -14.49
To analyze the cash conversion cycle of Geo Group, Inc., we observe a decreasing trend from Q4 2022 to Q1 2023, followed by a slight increase in Q2 and Q3 2023. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Geo Group, Inc.'s cash conversion cycle has been relatively stable around the 50-60 day range over the past eight quarters. A lower cash conversion cycle indicates that the company is efficient in managing its working capital and generating cash from its operations.
The decrease in the cash conversion cycle from Q4 2022 to Q1 2023 suggests improvements in managing inventory, collecting receivables, and paying off payables. However, the slight increase in Q2 and Q3 2023 may indicate a temporary slowdown in these processes, potentially impacting cash flow efficiency.
Overall, Geo Group, Inc. should continue monitoring its cash conversion cycle to ensure optimal working capital management and sustained cash flow generation.
Peer comparison
Dec 31, 2023