PBF Energy Inc (PBF)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 32.34 | 23.93 | 34.68 | 36.75 | 32.83 |
| Days of sales outstanding (DSO) | days | 13.00 | 11.43 | 17.26 | 12.23 | 12.44 |
| Number of days of payables | days | 9.74 | 7.40 | 12.62 | 8.87 | 9.30 |
| Cash conversion cycle | days | 35.60 | 27.96 | 39.32 | 40.11 | 35.96 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 32.34 + 13.00 – 9.74
= 35.60
The cash conversion cycle of PBF Energy Inc has varied over the past five years, showing fluctuations in the efficiency of its working capital management. The company's cash conversion cycle was 37.82 days as of December 31, 2023, compared to 29.19 days in 2022, indicating a slight increase in the time it takes to convert inventory and receivables into cash.
In 2021, the cash conversion cycle was 41.52 days, which was higher than the previous year, reflecting a potential slowdown in the company's cash conversion efficiency. The cycle further increased to 45.09 days in 2020 before decreasing to 38.39 days in 2019.
Overall, the trend suggests some inconsistency in managing the company's cash conversion cycle. PBF Energy Inc may benefit from further streamlining its inventory and accounts receivable processes to optimize working capital efficiency and enhance cash flow management in the future.
Peer comparison
Dec 31, 2023