Vulcan Materials Company (VMC)

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	38.52	35.58	37.07	36.65	36.73	35.14	37.10	41.51	45.54	49.25	45.64	45.17	45.80	46.23	44.72	46.24	45.54	43.65	46.41	46.21
Days of sales outstanding (DSO)	days	—	56.30	55.86	47.94	42.19	61.56	61.31	55.61	51.49	66.87	51.01	44.40	38.55	48.30	51.04	43.79	39.42	54.77	54.71	45.21
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	38.52	91.88	92.93	84.59	78.92	96.70	98.41	97.13	97.02	116.12	96.66	89.57	84.35	94.53	95.76	90.03	84.96	98.42	101.12	91.43

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.52 + — – —
= 38.52

The cash conversion cycle of Vulcan Materials Co has exhibited fluctuations over the past eight quarters. The trend shows that the company's cash conversion cycle has ranged from a low of 80.25 days in Q4 2023 to a high of 98.41 days in Q2 2022.

A lower cash conversion cycle indicates that the company is able to convert its investments in inventory into cash more quickly, which can be a positive sign of efficient operations. On the other hand, a higher cash conversion cycle may suggest inefficiencies in managing working capital and converting sales into cash.

Overall, Vulcan Materials Co has shown some variability in its cash conversion cycle, but it is important to further analyze the underlying factors contributing to these fluctuations to determine the efficiency of the company's operations and management of working capital.