SunCoke Energy Inc (SXC)
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 | 39.63 | 41.14 | 42.98 | 38.30 | 37.86 | 43.81 | 43.02 | 51.35 | 39.85 | 51.50 | 53.56 | 59.90 | 41.43 | 43.99 | 50.77 | 48.81 | 44.08 | 41.93 | 40.78 | 42.98 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 39.63 | 41.14 | 42.98 | 38.30 | 37.86 | 43.81 | 43.02 | 51.35 | 39.85 | 51.50 | 53.56 | 59.90 | 41.43 | 43.99 | 50.77 | 48.81 | 44.08 | 41.93 | 40.78 | 42.98 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 39.63 + — – —
= 39.63
The cash conversion cycle of SunCoke Energy Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 2020 to June 2021, the cash conversion cycle increased gradually, reaching a peak of 50.77 days in June 2021. This indicates that the company took longer to convert its investments into cash during this period. However, from September 2021 onwards, there was a decline in the cash conversion cycle, with the cycle decreasing to 37.86 days by December 2023. This decrease suggests that the company improved its efficiency in managing its working capital and converting inventory and other resources into cash.
Overall, the decreasing trend in the cash conversion cycle from September 2021 to December 2023 indicates improved efficiency in managing working capital and converting investments into cash. A lower cash conversion cycle is generally favorable as it implies that the company is able to generate cash flows quicker, which can improve liquidity and financial performance. The company should continue to monitor and manage its cash conversion cycle to ensure efficient working capital management and maximize cash flow generation in the future.
Peer comparison
Dec 31, 2024