PBF Energy Inc (PBF)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	28.29	32.34	23.93	34.68	36.75
Days of sales outstanding (DSO)	days	12.84	13.00	11.43	17.26	12.23
Number of days of payables	days	8.02	9.74	7.40	12.62	8.87
Cash conversion cycle	days	33.11	35.60	27.96	39.32	40.11

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.29 + 12.84 – 8.02
= 33.11

The cash conversion cycle for PBF Energy Inc has shown some fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 40.11 days, indicating that it took approximately 40 days for the company to convert its investments in inventory and other resources into cash flows from sales.

Over the subsequent years, there were variations in the cash conversion cycle. By December 31, 2021, the cycle had improved slightly to 39.32 days before experiencing a significant decrease to 27.96 days by the end of December 31, 2022. This reduction suggests that the company became more efficient in managing its working capital and converting its assets into cash during this period.

However, the cash conversion cycle increased slightly to 35.60 days by December 31, 2023, before decreasing again to 33.11 days by December 31, 2024. Overall, the trend in the cash conversion cycle for PBF Energy Inc indicates some fluctuations but generally reflects efforts to optimize working capital management and improve cash flow generation over the analyzed period.