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.
Peer comparison
Dec 31, 2023