Vulcan Materials Company (VMC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 45.93 | 38.52 | 36.73 | 45.53 | 45.80 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 45.93 | 38.52 | 36.73 | 45.53 | 45.80 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.93 + — – —
= 45.93
The cash conversion cycle of Vulcan Materials Company has shown some fluctuations over the past five years. In 2020, the company's cash conversion cycle was 45.80 days, which slightly decreased to 45.53 days in 2021. However, in 2022, there was a significant improvement as the cash conversion cycle decreased to 36.73 days. This positive trend continued into 2023 with a slight increase to 38.52 days.
Unfortunately, in 2024, the cash conversion cycle increased to 45.93 days, erasing some of the progress made in the previous years. Overall, Vulcan Materials Company's cash conversion cycle has shown volatility, with improvements in some years followed by setbacks in others. It is important for the company to focus on managing its working capital effectively to ensure a smoother cash conversion cycle in the future.
Peer comparison
Dec 31, 2024