SunCoke Energy Inc (SXC)

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	306.43	294.96	233.41	210.33	37.75
Days of sales outstanding (DSO)	days	15.83	19.71	20.50	13.18	14.07
Number of days of payables	days	288.81	268.19	231.57	172.95	36.57
Cash conversion cycle	days	33.45	46.48	22.34	50.56	15.25

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 306.43 + 15.83 – 288.81
= 33.45

The cash conversion cycle of SunCoke Energy Inc has fluctuated over the past five years, indicating varying efficiency in managing its liquidity and working capital. In 2023, the company's cash conversion cycle decreased to 18.09 days from 23.01 days in 2022, reflecting an improvement in cash management. This suggests that SunCoke Energy Inc was able to convert its inventory and accounts receivable into cash more quickly in 2023.

Compared to 2021 when the cash conversion cycle was 19.78 days, the company was more efficient in managing its working capital in 2023. However, the cash conversion cycle in 2023 was slightly higher than in 2019 when it was 15.39 days, indicating a potential slowdown in the conversion of inventory and receivables into cash.

Overall, SunCoke Energy Inc's cash conversion cycle has shown some variability in recent years, with 2023 demonstrating improved efficiency in converting working capital into cash compared to 2022 and 2021, but slightly less efficient than in 2019. Monitoring and managing the cash conversion cycle is essential for the company to optimize its liquidity position and enhance overall financial performance.