Green Plains Renewable Energy Inc (GPRE)

Cash conversion cycle

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 28.05 24.70 23.87 21.12 19.98 20.47 24.06 25.88 22.48 22.33 33.54 39.02 27.19 31.94 43.51 45.05 40.66 26.41 22.45 23.40
Days of sales outstanding (DSO) days 14.09 10.65 12.96 10.53 10.55 15.02 13.70 10.55 10.95 12.28 17.41 17.05 15.61 13.41 13.62 12.47 10.67 18.99 19.24 10.74
Number of days of payables days 24.27 16.58 15.27 15.73 21.95 15.09 10.99 13.12 24.26 13.22 14.64 13.43 20.31 17.16 17.83 17.98 24.83 14.36 13.60 11.65
Cash conversion cycle days 17.87 18.77 21.55 15.92 8.58 20.39 26.77 23.30 9.17 21.38 36.31 42.64 22.48 28.20 39.29 39.53 26.50 31.04 28.09 22.49

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 (CCC) of Green Plains Renewable Energy Inc fluctuated over the periods provided in the data. The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 2020 to December 2024, the CCC ranged from a high of 42.64 days to a low of 8.58 days. A lower CCC indicates that the company is able to efficiently convert its resources into cash, while a higher CCC suggests inefficiencies in managing working capital.

The CCC increased from March 2020 to September 2021, indicating a longer time to convert resources into cash. However, from September 2021 to December 2024, the CCC showed a decreasing trend, reaching a low of 8.58 days by the end of December 2024. This downward trend suggests an improvement in the company's management of working capital and more efficient cash flow generation.

Overall, the fluctuation in Green Plains Renewable Energy Inc's cash conversion cycle indicates changes in the efficiency of its working capital management and its ability to convert resources into cash. A lower CCC is generally favorable as it signifies a quicker conversion of investments into cash inflows. A careful analysis of the underlying factors influencing the CCC would be necessary to understand the reasons behind the fluctuations and to make informed assessments of the company's financial health.