Kirby Corporation (KEX)

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	483.09	543.57	548.55	536.39	543.28	480.78	214.81	211.69	196.53	185.63	452.56	448.47	136.27	147.23	153.39	155.29	529.73	517.60	530.46	564.00
Days of sales outstanding (DSO)	days	79.40	63.06	64.10	66.64	82.71	67.46	65.90	65.97	69.00	79.33	76.19	75.65	53.00	47.47	50.72	51.94	48.76	48.07	55.95	54.00
Number of days of payables	days	286.39	277.56	303.92	314.31	327.11	295.99	136.08	128.56	118.08	108.98	262.36	241.61	71.51	71.89	80.95	103.23	311.71	267.82	262.77	316.18
Cash conversion cycle	days	276.10	329.07	308.73	288.72	298.88	252.25	144.63	149.10	147.45	155.98	266.39	282.51	117.76	122.81	123.16	104.00	266.77	297.85	323.63	301.83

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 483.09 + 79.40 – 286.39
= 276.10

The cash conversion cycle of Kirby Corp. has shown some fluctuation over the past eight quarters. In Q4 2023, the cash conversion cycle was 68.32 days, which was slightly lower compared to the previous quarter. This indicates that Kirby Corp. was able to convert its investments in inventory and accounts receivable into cash more efficiently during this period.

Looking back over the past two years, the cash conversion cycle has ranged between 68 days and 84 days, with the longest cycle recorded in Q3 2022 at 84.98 days. Despite this variability, Kirby Corp. has generally maintained a relatively stable cash conversion cycle, suggesting a consistent approach to managing its working capital.

It is important to note that a shorter cash conversion cycle typically indicates that a company is able to collect cash from its customers faster and manage its inventory efficiently. On the other hand, a longer cycle may imply delays in receiving payments or inefficiencies in inventory management.

Overall, Kirby Corp.'s cash conversion cycle has shown some fluctuations but has generally remained within a manageable range over the past two years, reflecting the company's ability to efficiently manage its working capital.