Gibraltar Industries Inc (ROCK)
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 | 52.69 | 51.52 | 49.26 | 49.95 | 43.30 | 50.72 | 56.75 | 60.55 | 58.04 | 68.00 | 66.47 | 63.57 | 61.27 | 58.05 | 53.24 | 46.59 | 46.23 | 44.00 | 44.33 | 48.96 |
| Days of sales outstanding (DSO) | days | 47.23 | 56.53 | 69.35 | 61.22 | 59.49 | 68.67 | 71.35 | 61.52 | 57.02 | 71.34 | 72.44 | 65.49 | 64.41 | 74.87 | 68.65 | 65.94 | 69.99 | 74.77 | 73.81 | 67.94 |
| Number of days of payables | days | 44.78 | 60.89 | 51.60 | 46.20 | 33.10 | 57.82 | 55.30 | 45.74 | 36.31 | 52.39 | 53.87 | 54.05 | 59.90 | 61.56 | 67.30 | 58.84 | 63.36 | 74.38 | 65.53 | 56.83 |
| Cash conversion cycle | days | 55.14 | 47.16 | 67.01 | 64.97 | 69.69 | 61.57 | 72.80 | 76.33 | 78.75 | 86.95 | 85.04 | 75.01 | 65.78 | 71.37 | 54.59 | 53.70 | 52.86 | 44.39 | 52.62 | 60.07 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.69 + 47.23 – 44.78
= 55.14
The cash conversion cycle of Gibraltar Industries Inc has shown fluctuations over the past few years. It decreased from 60.07 days on March 31, 2020, to a low of 44.39 days on September 30, 2020. This indicates that the company was able to turn its investments into cash relatively quickly during that period.
However, the cash conversion cycle started to increase again, reaching a peak of 86.95 days on September 30, 2022, before gradually decreasing to 47.16 days on September 30, 2024. A lower cash conversion cycle suggests that the company is efficiently managing its working capital and generating cash flows.
Overall, Gibraltar Industries Inc should strive to maintain a reasonable cash conversion cycle to ensure optimal efficiency in managing its cash flows, working capital, and overall financial health.
Peer comparison
Dec 31, 2024