Bristow Group Inc (VTOL)
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 | 161.33 | 155.14 | 151.75 | 132.48 | 127.65 | 136.51 | 139.04 | 126.07 | 116.17 | 96.40 | 58.13 | 43.18 | 51.85 | 58.14 | 116.94 | 439.91 | 113.53 | 198.44 | 201.74 | 173.66 |
| Days of sales outstanding (DSO) | days | 58.63 | 54.55 | — | — | — | — | — | 0.55 | — | — | — | 0.81 | — | — | 3.49 | 0.87 | 1.10 | 15.14 | 22.66 | 58.79 |
| Number of days of payables | days | 141.98 | 119.67 | 133.46 | 115.35 | 139.69 | 126.09 | 149.10 | 98.01 | 79.17 | 65.93 | 39.95 | 32.58 | 33.62 | 36.44 | 65.84 | 278.14 | — | — | — | — |
| Cash conversion cycle | days | 77.98 | 90.03 | 18.28 | 17.12 | -12.04 | 10.41 | -10.06 | 28.61 | 37.00 | 30.48 | 18.18 | 11.41 | 18.23 | 21.70 | 54.59 | 162.64 | 114.63 | 213.58 | 224.41 | 232.45 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 161.33 + 58.63 – 141.98
= 77.98
The cash conversion cycle of Bristow Group Inc has shown fluctuations over the periods indicated. The cash conversion cycle represents the time a company takes to convert its investments in inventory and other resources into cash flows from sales to customers.
The positive values for the cash conversion cycle indicate that Bristow Group Inc took more time to convert its investments into cash compared to the negative values which show that the company converted its investments into cash quicker than the prior period.
In general, a shorter cash conversion cycle is favorable as it indicates that the company is efficiently managing its working capital. Bristow Group Inc experienced a significant improvement in its cash conversion cycle from negative days in the first quarter of 2020 to positive days in subsequent quarters, showing a more efficient working capital management.
It's important for Bristow Group Inc to continue monitoring and managing its cash conversion cycle effectively to optimize its working capital and overall financial performance.