SunCoke Energy Inc (SXC)

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	306.43	353.05	339.90	393.49	294.96	345.76	339.02	348.83	233.41	219.82	239.67	227.98	210.33	92.35	60.55	48.58	37.75	41.14	47.28	42.08
Days of sales outstanding (DSO)	days	15.83	14.67	17.48	14.90	19.71	24.18	24.04	24.77	20.50	16.58	14.41	13.28	13.18	12.38	12.08	12.80	14.07	14.56	23.56	21.12
Number of days of payables	days	288.81	311.22	294.95	289.42	268.19	258.18	279.85	302.10	231.57	207.58	186.17	177.89	172.95	66.01	32.65	35.60	36.57	31.40	36.92	40.68
Cash conversion cycle	days	33.45	56.50	62.43	118.97	46.48	111.76	83.20	71.50	22.34	28.82	67.91	63.37	50.56	38.72	39.98	25.78	15.25	24.31	33.92	22.51

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 shown fluctuations over the past eight quarters. In Q1 2023, the company's cash conversion cycle was at its highest at 28.25 days, indicating a longer period of time required to convert investments in inventory and accounts receivable back into cash. This was an increase from Q4 2022, where the cycle was 23.01 days.

However, in Q4 2023, SunCoke Energy Inc managed to reduce its cash conversion cycle to 18.09 days, the lowest among the reported quarters. This suggests an improvement in efficiency in managing working capital components.

Overall, the trend in the cash conversion cycle for SunCoke Energy Inc has been fluctuating, with some quarters showing longer cycles than others. It is essential for the company to focus on maintaining a lower cash conversion cycle to streamline operations and improve cash flow management.