Green Brick Partners Inc (GRBK)
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 | 455.15 | 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 | 441.80 | 458.84 | 486.58 | 491.50 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 455.15 | 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 | 441.80 | 458.84 | 486.58 | 491.50 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 455.15 + — – —
= 455.15
The cash conversion cycle for Green Brick Partners Inc has shown a fluctuating trend over the past eight quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.
In Q4 2023, the cash conversion cycle increased to 441.21 days from the previous quarter's 416.04 days. This indicates that the company took longer to convert its resources into cash from sales, possibly due to challenges in managing inventory levels or delays in collecting payments from customers.
Comparing Q4 2023 to the same quarter in 2022, there was an improvement from 406.33 days to 441.21 days. This suggests that the company has become less efficient in converting its resources into cash over the year.
Overall, Green Brick Partners Inc should focus on streamlining its operations to reduce the cash conversion cycle and improve its cash flow efficiency. This could involve improving inventory management, optimizing the sales process, and enhancing collection procedures to ensure timely receipt of payments.
Peer comparison
Dec 31, 2023