Gibraltar Industries Inc (ROCK)
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 | 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 | 33.34 | 45.99 | 48.23 | 56.00 |
| Days of sales outstanding (DSO) | days | 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 | 59.94 | 78.48 | 70.74 | 62.64 |
| Number of days of payables | days | 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 | 39.08 | 57.39 | 46.96 | 47.97 |
| Cash conversion cycle | days | 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 | 54.20 | 67.08 | 72.01 | 70.67 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 43.30 + 59.49 – 33.10
= 69.69
The cash conversion cycle of Gibraltar Industries Inc. has shown some fluctuations over the past eight quarters. In the most recent quarter, Q4 2023, the company's cash conversion cycle was 69.69 days, which decreased from the previous quarter. This indicates that the company has been more efficient in managing its cash flow and working capital in the most recent period.
Looking back over the past two years, we can observe variations in the cash conversion cycle. For instance, in Q3 2022, the cycle was at its peak at 86.95 days, while in Q1 2022, it was at a relatively lower level of 75.01 days. These fluctuations suggest that the company may have faced challenges in managing its receivables, inventory, and payables effectively during those periods.
Overall, it is crucial for Gibraltar Industries Inc. to closely monitor its cash conversion cycle to ensure efficient management of its working capital. By optimizing this cycle, the company can improve cash flow and overall financial performance.
Peer comparison
Dec 31, 2023