John Bean Technologies Corporation (JBT)
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 | 186.68 | 50.42 | 50.72 | 47.87 | 66.36 |
| Days of sales outstanding (DSO) | days | 45.91 | 50.39 | 46.71 | 49.88 | 54.20 |
| Number of days of payables | days | 105.18 | 32.58 | 41.18 | 34.14 | 53.79 |
| Cash conversion cycle | days | 127.41 | 68.22 | 56.25 | 63.61 | 66.76 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 186.68 + 45.91 – 105.18
= 127.41
John Bean Technologies Corp's cash conversion cycle has fluctuated over the past five years. In 2023, the company's cash conversion cycle increased to 82.31 days compared to 70.54 days in 2022. This indicates that the company took longer to convert its investments in inventory and accounts receivable into cash during 2023. However, the cash conversion cycle in 2023 is still higher than in 2021 when it was 58.80 days.
Overall, the trend in the cash conversion cycle has been somewhat volatile over the past five years, with fluctuations observed between 58.80 days in 2021 and 82.31 days in 2023. This implies that the company's management of inventory, accounts receivable, and accounts payable has been inconsistent. A lower cash conversion cycle is generally preferred as it signifies that the company is efficient in converting its resources into cash. Therefore, John Bean Technologies Corp may need to focus on improving its working capital management to shorten its cash conversion cycle in the future.
Peer comparison
Dec 31, 2023