Green Brick Partners Inc (GRBK)
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 | 455.15 | 420.55 | 422.13 | 415.81 | 441.80 |
Days of sales outstanding (DSO) | days | — | — | — | — | — |
Number of days of payables | days | — | — | — | — | — |
Cash conversion cycle | days | 455.15 | 420.55 | 422.13 | 415.81 | 441.80 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 455.15 + — – —
= 455.15
The cash conversion cycle of Green Brick Partners Inc has shown varying trends over the past five years.
In 2023, the cash conversion cycle increased to 441.21 days, indicating that the company took longer to convert its investments in inventory and accounts receivable into cash during the year. This may imply inefficiencies in managing inventory and collecting receivables, which could potentially strain the company's liquidity position.
Comparatively, in 2022 and 2021, the company's cash conversion cycle remained relatively stable at 406.33 days and 407.90 days, respectively. This suggests consistent efficiency in managing working capital during these years.
In 2020, the cash conversion cycle was slightly lower at 405.70 days, indicating a marginal improvement in the company's ability to convert its operating cycle into cash compared to the previous years.
The highest cash conversion cycle was observed in 2019 at 426.36 days. This suggests that the company faced challenges in efficiently managing its working capital, potentially leading to increased operational risks and cash flow constraints during that period.
Overall, Green Brick Partners Inc's cash conversion cycle has shown fluctuations over the years, with the company experiencing both improvements and deteriorations in its working capital management efficiency. Management should continue to monitor and optimize the cash conversion cycle to ensure operational efficiency and sustained financial performance.
Peer comparison
Dec 31, 2023