KBR Inc (KBR)
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 | — | — | — | — | — | — | 5.73 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 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 | 63.11 | 68.67 | 70.35 | 68.17 |
| Number of days of payables | days | 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 | 41.87 | 46.69 | 46.94 | 46.07 |
| Cash conversion cycle | days | 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 | 21.24 | 21.98 | 23.41 | 22.10 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 54.16 – 33.10
= 21.06
The cash conversion cycle of KBR Inc has shown fluctuations over the past several quarters. The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales, has ranged from 13.20 days to 23.41 days over the past five quarters.
Overall, a lower cash conversion cycle indicates that the company is able to generate cash more quickly from its operations. The company experienced its lowest cash conversion cycle of 13.20 days in the third quarter of 2021, indicating efficient management of inventory and accounts receivable during that period.
However, the cash conversion cycle increased in subsequent quarters, with the cycle reaching its highest point of 23.41 days in the second quarter of 2019. This increase may suggest delays in collecting receivables or managing inventory levels less efficiently.
Analyzing the trend of the cash conversion cycle over multiple quarters can provide insights into the company's operational efficiency, liquidity management, and effectiveness in managing working capital. Further investigation into the underlying factors driving changes in the cash conversion cycle could help identify potential areas for improvement in the company's cash flow management.
Peer comparison
Dec 31, 2023