Vulcan Materials Company (VMC)
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 | 45.93 | 43.27 | 42.24 | 41.25 | 38.52 | 35.58 | 37.07 | 36.65 | 36.73 | 35.14 | 37.10 | 41.51 | 45.53 | 49.25 | 45.65 | 45.16 | 45.80 | 46.23 | 44.72 | 46.24 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 45.93 | 43.27 | 42.24 | 41.25 | 38.52 | 35.58 | 37.07 | 36.65 | 36.73 | 35.14 | 37.10 | 41.51 | 45.53 | 49.25 | 45.65 | 45.16 | 45.80 | 46.23 | 44.72 | 46.24 |
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 exhibited fluctuations over the reported periods. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle has shown a somewhat decreasing trend, with fluctuations at various points. The cycle ranged from a high of 49.25 days on September 30, 2021, to a low of 35.14 days on September 30, 2022.
A lower cash conversion cycle generally indicates better liquidity management and efficiency in turning investments into cash. On the other hand, a higher cycle could suggest delays in inventory turnover, collection of receivables, or payment of payables.
Overall, Vulcan Materials Company has shown improvements in its cash conversion cycle over the years, indicating more effective management of working capital and potentially better cash flow management. Further analysis and comparison with industry benchmarks could provide additional insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024