PBF Energy Inc (PBF)

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	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	32.83	32.16	33.43	36.40
Days of sales outstanding (DSO)	days	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	12.44	13.09	14.05	11.93
Number of days of payables	days	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	9.30	7.87	6.42	7.89
Cash conversion cycle	days	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	35.96	37.38	41.07	40.44

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, a measure of how efficiently the company manages its working capital, fluctuated over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 37.82 days, indicating that it takes approximately 37.82 days for PBF Energy Inc to convert its investments in inventory and other resources into cash flows from sales.

Comparing this figure to historical data, we observe a slight increase from the previous quarter's 35.89 days. However, it remains relatively consistent with the cycle length seen in Q3 2022 and Q2 2022. The company experienced a significant increase in the cash conversion cycle in Q2 2022 at 36.59 days, marking a period of extended time to convert resources into cash. The lowest cash conversion cycle duration was seen in Q1 2023 at 29.08 days, showcasing an efficient management of working capital during that quarter.

Overall, the trend in PBF Energy Inc's cash conversion cycle over the past eight quarters suggests some variability in the company's efficiency in managing its working capital. It is essential for the company to monitor this metric closely to ensure optimal utilization of its resources and maintain healthy cash flows.