Green Brick Partners Inc (GRBK)
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 | 506.40 | 525.10 | 518.67 | 502.60 | 454.75 | 430.63 | 415.38 | 392.45 | 420.55 | 421.72 | 404.99 | 421.13 | 422.13 | 480.19 | 476.95 | 446.61 | 415.81 | 388.31 | 397.72 | 430.34 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 506.40 | 525.10 | 518.67 | 502.60 | 454.75 | 430.63 | 415.38 | 392.45 | 420.55 | 421.72 | 404.99 | 421.13 | 422.13 | 480.19 | 476.95 | 446.61 | 415.81 | 388.31 | 397.72 | 430.34 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 506.40 + — – —
= 506.40
The cash conversion cycle for Green Brick Partners Inc has shown some fluctuations over the periods indicated. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle varied between a low of 388.31 days in September 2020 and a high of 525.10 days in September 2024. The highest cycle was observed in March 31, 2024, at 502.60 days.
The trend indicates some volatility in the company's ability to efficiently manage its cash cycle, with periodic improvements followed by increases in the cycle duration. A longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying off payables.
Overall, Green Brick Partners Inc should focus on optimizing its cash conversion cycle to ensure efficient utilization of resources and timely conversion of investments into cash to support its operations and growth.
Peer comparison
Dec 31, 2024