Green Plains Renewable Energy Inc (GPRE)

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	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	32.30	34.89	131.27	282.56
Days of sales outstanding (DSO)	days	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	17.12	12.34	18.17	10.99
Number of days of payables	days	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	24.08	19.71	22.16	43.11
Cash conversion cycle	days	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	25.34	27.51	127.29	250.43

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 for Green Plains Inc fluctuated over the past eight quarters, indicating changes in the company's efficiency in managing its cash flow from operations. In Q1 2022, the company had a relatively long cash conversion cycle of 43.29 days, suggesting that it took longer for the company to convert its investments in inventory and accounts receivable into cash. However, the company improved its efficiency in Q4 2022, with a notably shorter cash conversion cycle of 15.57 days.

The trend continued into Q1 2023, where the cash conversion cycle increased slightly to 25.97 days but remained lower than the previous year. In Q2 and Q3 2023, the cash conversion cycle increased further to 29.65 days and 22.62 days, respectively, indicating a potential slowdown in operations and cash flow conversion efficiency.

In Q4 2023, the cash conversion cycle improved to 13.98 days, suggesting a positive development in the company's ability to manage working capital effectively and turn it into cash more quickly. Overall, fluctuations in the cash conversion cycle for Green Plains Inc indicate varying levels of efficiency in managing its working capital and converting it into cash over the analyzed period.