Green Plains Renewable Energy Inc (GPRE)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 28.05 | 19.98 | 22.48 | 27.19 | 46.19 |
| Days of sales outstanding (DSO) | days | 14.09 | 10.55 | 10.95 | 15.61 | 10.67 |
| Number of days of payables | days | 24.27 | 21.95 | 24.26 | 20.31 | 28.21 |
| Cash conversion cycle | days | 17.87 | 8.58 | 9.17 | 22.48 | 28.65 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.05 + 14.09 – 24.27
= 17.87
The cash conversion cycle of Green Plains Renewable Energy Inc has shown a decreasing trend over the past years, indicating an improvement in the efficiency of its working capital management.
As of December 31, 2020, the cash conversion cycle was 28.65 days, which decreased to 22.48 days by December 31, 2021. The company significantly reduced its cash conversion cycle to 9.17 days by December 31, 2022, and further improved to 8.58 days by December 31, 2023. However, there was a slight increase to 17.87 days by December 31, 2024.
The decreasing trend from 2020 to 2023 suggests that Green Plains Renewable Energy Inc is effectively managing its accounts receivable, inventory, and accounts payable to convert its resources into cash more efficiently. The slight increase in the cash conversion cycle in 2024 may indicate a temporary delay in cash flow conversion.
Overall, the company has made positive strides in optimizing its cash conversion cycle, which is essential for enhancing liquidity and operational efficiency.
Peer comparison
Dec 31, 2024