KBR Inc (KBR)
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 | — | — | — | — | — | — | — | — | — | — | 5.73 | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 52.31 | 54.84 | 51.13 | 52.89 | 54.16 | 56.84 | 58.30 | 60.62 | 54.28 | 44.90 | 49.55 | 50.34 | 72.10 | 72.84 | 58.83 | 56.48 | 58.29 | 61.92 | 60.42 | 67.86 |
| Number of days of payables | days | 39.05 | 39.08 | 36.60 | 36.73 | 33.10 | 38.96 | 42.14 | 44.53 | 37.33 | 28.67 | 32.21 | 31.73 | 53.44 | 59.64 | 43.08 | 42.35 | 41.07 | 41.94 | 42.18 | 49.12 |
| Cash conversion cycle | days | 13.26 | 15.76 | 14.53 | 16.16 | 21.06 | 17.89 | 16.17 | 16.08 | 16.95 | 16.23 | 23.06 | 18.60 | 18.67 | 13.20 | 15.75 | 14.12 | 17.22 | 19.98 | 18.24 | 18.74 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 52.31 – 39.05
= 13.26
The cash conversion cycle of KBR Inc, a leading provider of technology, engineering, procurement, and construction services, has shown fluctuations over the reporting periods. 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.
At the beginning of the analysis period, the cash conversion cycle stood at 18.74 days as of March 31, 2020, indicating the average time taken by KBR to generate cash from its operations. Over the following quarters, the company managed to reduce this cycle to as low as 13.20 days by September 30, 2021, demonstrating an improvement in efficiency.
However, the cycle increased to 23.06 days by June 30, 2022, which may suggest potential challenges in managing inventory and collecting receivables. Nonetheless, KBR was able to bring down the cycle to 13.26 days by December 31, 2024, indicating a positive trend towards faster conversion of resources into cash.
Overall, KBR's cash conversion cycle has displayed variability over the reporting periods, reflecting fluctuations in inventory management, accounts receivable collection, and payment practices. Analyzing this cycle can provide insights into the company's operational efficiency, liquidity position, and effectiveness in managing working capital.
Peer comparison
Dec 31, 2024