PBF Energy Inc (PBF)

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	28.29	27.27	29.27	29.61	32.34	31.59	26.90	24.85	23.93	24.46	30.20	34.60	34.68	46.27	49.86	56.57	36.75	28.57	27.84	14.17
Days of sales outstanding (DSO)	days	12.84	13.06	14.82	11.44	13.00	14.47	11.93	9.25	11.43	13.56	18.69	21.21	17.26	17.21	19.52	21.08	12.23	9.42	7.51	6.54
Number of days of payables	days	8.02	10.00	11.51	9.84	9.74	12.05	6.03	6.53	7.40	8.30	13.62	19.43	12.62	7.54	14.81	17.38	8.87	4.09	7.28	6.28
Cash conversion cycle	days	33.11	30.32	32.58	31.22	35.60	34.01	32.79	27.57	27.96	29.72	35.28	36.38	39.32	55.94	54.56	60.26	40.11	33.91	28.07	14.43

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 of PBF Energy Inc has shown fluctuations over the periods from March 31, 2020, to December 31, 2024. Initially, the company had a relatively low cash conversion cycle of 14.43 days as of March 31, 2020. Subsequently, there was an increase in the cash conversion cycle, reaching its peak at 60.26 days as of March 31, 2021.

However, there was a downward trend in the cash conversion cycle from March 31, 2021, to June 30, 2022, indicating an improvement in cash management efficiency. The company managed to reduce its cash conversion cycle to 27.96 days by December 31, 2022, and further to 27.57 days by March 31, 2023.

From June 30, 2023, to December 31, 2024, there were slight fluctuations in the cash conversion cycle, hovering around 30 days. Overall, a lower cash conversion cycle suggests that the company took less time to convert its investments in inventory and other inputs into cash from sales. This improvement could indicate effective working capital management and operational efficiency in the company's cash flow cycle.