American Woodmark Corporation (AMWD)
Cash conversion cycle
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.34 | 45.41 | 46.52 | 44.67 | 39.51 | 40.16 | 38.18 | 37.26 | 40.74 | 46.71 | 52.50 | 53.11 | 51.10 | 46.65 | 45.08 | 44.12 | 35.94 | 39.12 | 35.41 | 35.62 |
| Days of sales outstanding (DSO) | days | 23.74 | 27.09 | 25.17 | 24.78 | 26.10 | 22.01 | 22.79 | 21.26 | 21.05 | 20.59 | 27.15 | 30.29 | 30.85 | 31.83 | 31.27 | 26.56 | 30.74 | 32.31 | 33.33 | 27.90 |
| Number of days of payables | days | 36.86 | 14.27 | 17.49 | 17.56 | 16.01 | 15.95 | 13.98 | 13.70 | 13.65 | 12.26 | 17.77 | 24.29 | 24.94 | 20.10 | 20.56 | 21.17 | 23.47 | 24.02 | 21.74 | 17.66 |
| Cash conversion cycle | days | 33.21 | 58.23 | 54.20 | 51.89 | 49.60 | 46.21 | 46.99 | 44.83 | 48.13 | 55.05 | 61.87 | 59.11 | 57.00 | 58.38 | 55.79 | 49.52 | 43.20 | 47.42 | 47.00 | 45.86 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.34 + 23.74 – 36.86
= 33.21
The analysis of American Woodmark Corporation’s cash conversion cycle (CCC) over the specified periods reveals fluctuating operational efficiency. Starting at approximately 45.86 days as of July 31, 2020, the CCC experienced a gradual increase, reaching a peak of around 61.87 days by October 31, 2022. This upward trend indicates a lengthening of the cycle, which suggests slower inventory turnover, extended receivables collection periods, or delayed payables management during this period.
Between late 2022 and early 2023, the cycle demonstrated signs of tightening, decreasing to approximately 48.13 days in April 2023 and further down to about 44.83 days by July 2023. This reduction suggests improvements in operational efficiency, potentially through faster inventory turnover, quicker receivables collection, or optimized payables. However, slight fluctuations resumed afterward, with the cycle increasing again to 54.20 days by October 2024.
A notable change occurs in early 2025, where the CCC drops significantly to approximately 33.21 days as of April 2025. This substantial decrease may reflect marked improvements in supply chain efficiencies, receivables management, and payables practices, enhancing cash flow and overall liquidity position.
Overall, the data indicates periods of operational strain and subsequent improvements, with an overarching trend towards cycle reduction in the latest period. The fluctuations point to a dynamic and responsive operational environment, possibly influenced by external market conditions, supply chain factors, or strategic management initiatives aimed at optimizing cash conversion efficiency.