American Woodmark Corporation (AMWD)

Cash conversion cycle

		Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Days of inventory on hand (DOH)	days	33.00	33.22	31.80	31.34	34.54	39.92	43.51	43.99	42.21	38.43	38.29	37.09	33.59	32.13	28.60	28.95	29.08	30.27	30.73	30.50
Days of sales outstanding (DSO)	days	23.21	21.92	22.73	21.24	21.04	20.65	27.19	30.31	30.84	31.70	31.20	26.56	30.83	32.89	33.30	27.93	28.69	27.48	26.78	28.15
Number of days of payables	days	13.37	13.20	11.65	11.52	11.58	10.47	14.73	20.12	20.60	16.56	17.46	17.79	19.46	19.72	17.56	14.35	15.83	15.88	17.90	17.22
Cash conversion cycle	days	42.84	41.95	42.88	41.06	44.01	50.09	55.98	54.18	52.44	53.58	52.03	45.85	44.96	45.30	44.35	42.53	41.94	41.87	39.62	41.43

April 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 33.00 + 23.21 – 13.37
= 42.84

The cash conversion cycle for American Woodmark Corporation fluctuated over the past few years, ranging from a low of 39.62 days to a high of 55.98 days. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert inventory into sales and cash quickly. On the other hand, a longer cash conversion cycle may suggest inefficiencies in managing inventory, accounts receivables, or payables, resulting in cash flow challenges.

American Woodmark Corporation's cash conversion cycle has shown some volatility, with some periods showing shorter cycles while others have longer cycles. It is important for the company to monitor and manage its working capital effectively to ensure optimal cash flow management and profitability.