Kirby Corporation (KEX)
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 | 60.46 | 64.64 | 67.09 | 67.76 | 69.35 | 78.18 | 77.41 | 73.65 | 74.51 | 66.27 | 65.67 | 67.49 | 64.79 | 63.31 | 70.90 | 72.69 | 65.31 | 63.10 | 62.04 | 57.52 |
Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Cash conversion cycle | days | 60.46 | 64.64 | 67.09 | 67.76 | 69.35 | 78.18 | 77.41 | 73.65 | 74.51 | 66.27 | 65.67 | 67.49 | 64.79 | 63.31 | 70.90 | 72.69 | 65.31 | 63.10 | 62.04 | 57.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.46 + — – —
= 60.46
The cash conversion cycle for Kirby Corporation has shown fluctuating trends over the past few years. The cycle represents the time it takes for the company to convert its investments in inventory into cash inflows from sales to customers.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged between 57.52 days to 78.18 days. Overall, the cycle appears to have increased in the first half of the period before stabilizing and then decreasing towards the end.
Key points to note:
- The cycle peaked at 78.18 days on September 30, 2023, indicating a longer time to convert inventory and receivables into cash during that period.
- The lowest point of 57.52 days was recorded on March 31, 2020, demonstrating efficient management of cash flows and working capital during that period.
- There was a notable increase in the cash conversion cycle from March 31, 2021, to June 30, 2023, suggesting potential challenges in managing inventory and receivables effectively during this phase.
- The cycle showed improvement towards the end of the period, with December 31, 2024, reflecting the shortest cycle of 60.46 days, indicating better efficiency in converting assets into cash.
In conclusion, Kirby Corporation's cash conversion cycle has experienced fluctuations over the analyzed period, with varying levels of efficiency in managing working capital and cash flows. Monitoring and managing this cycle effectively are crucial for optimizing liquidity and operational performance.
Peer comparison
Dec 31, 2024