Green Brick Partners Inc (GRBK)
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 | 506.85 | 455.15 | 420.55 | 422.13 | 415.81 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 506.85 | 455.15 | 420.55 | 422.13 | 415.81 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 506.85 + — – —
= 506.85
The cash conversion cycle of Green Brick Partners Inc has been consistently increasing over the years, indicating a potential liquidity challenge. As of December 31, 2020, the cash conversion cycle stood at 415.81 days, and by December 31, 2024, it had elongated to 506.85 days. This suggests that the company is taking longer to convert its investments in raw materials into cash from sales. A prolonged cash conversion cycle can tie up valuable cash resources, potentially impacting the company's ability to meet short-term obligations or fund growth opportunities efficiently. It is crucial for the company to assess and improve its working capital management practices to optimize its cash conversion cycle and enhance overall liquidity position.
Peer comparison
Dec 31, 2024