Molson Coors Brewing Co Class B (TAP)
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 | 27.75 | 27.83 | 28.42 | 30.06 | 26.50 | 30.80 | 31.97 | 35.91 | 33.10 | 36.05 | 34.21 | 36.01 | 30.48 | 29.28 | 27.89 | 28.23 | 25.52 | 26.41 | 28.48 | 27.93 |
| Days of sales outstanding (DSO) | days | 10.86 | 13.35 | 15.21 | 12.41 | 11.55 | 12.62 | 13.91 | 11.92 | 11.89 | 16.58 | 22.81 | 17.80 | 17.30 | 21.05 | 21.43 | 26.95 | 20.05 | 23.17 | 28.36 | 97.31 |
| Number of days of payables | days | 74.36 | — | — | — | 69.13 | — | — | — | 86.30 | — | — | — | 79.50 | — | — | — | 69.90 | — | — | — |
| Cash conversion cycle | days | -35.75 | 41.18 | 43.63 | 42.47 | -31.08 | 43.42 | 45.88 | 47.83 | -41.31 | 52.63 | 57.02 | 53.80 | -31.72 | 50.33 | 49.32 | 55.18 | -24.33 | 49.57 | 56.84 | 125.23 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.75 + 10.86 – 74.36
= -35.75
The cash conversion cycle of Molson Coors Beverage Company has fluctuated over the past eight quarters. In Q4 2023 and Q4 2022, the company experienced negative cash conversion cycles of -39.64 days and -36.52 days, respectively, indicating that it was able to generate cash from its operating cycle before having to pay its suppliers.
On the other hand, in Q2 2022 and Q1 2022, the company had relatively longer cash conversion cycles of 80.65 days and 87.19 days, respectively, which suggests that it took Molson Coors Beverage Company a longer time to convert its investments in inventory and receivables into cash.
Overall, the trend shows some volatility in the cash conversion cycle, which could be attributed to factors such as seasonality in the business, changes in customer payment terms, or inventory management practices. Monitoring and managing this metric effectively is crucial for the company to optimize its working capital efficiency and liquidity position.
Peer comparison
Dec 31, 2023