Green Plains Renewable Energy Inc (GPRE)

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	19.98	22.48	27.19	46.19	30.27
Days of sales outstanding (DSO)	days	10.55	10.95	15.61	10.67	17.12
Number of days of payables	days	21.95	24.26	20.31	28.21	22.57
Cash conversion cycle	days	8.58	9.17	22.48	28.65	24.82

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.98 + 10.55 – 21.95
= 8.58

The cash conversion cycle of Green Plains Inc has shown a fluctuating trend over the past five years.

In 2023, the company's cash conversion cycle decreased to 13.98 days, which indicates that it took the company approximately 14 days to convert its investments in inventory and accounts receivable into cash. This is an improvement from 2022 when the cycle was 15.57 days.

Comparing the most recent data to the previous years, it is evident that Green Plains Inc has been able to manage its working capital more efficiently. The significant reduction in the cash conversion cycle from 2020 to 2023 demonstrates the company's ability to streamline its operations, manage inventory levels, and collect receivables more effectively.

Overall, the decreasing trend in the cash conversion cycle suggests that Green Plains Inc has been successful in optimizing its cash flow management and operational efficiency in recent years.