CorVel Corp (CRVL)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 42,436.87 | 44.57 | 41.16 | 46.65 | 42.75 |
| Number of days of payables | days | — | 9.60 | 9.81 | 10.40 | 10.51 |
| Cash conversion cycle | days | 42,436.87 | 34.96 | 31.35 | 36.24 | 32.24 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 42,436.87 – —
= 42,436.87
The cash conversion cycle measures the length of time it takes for a company like CorVel Corp to convert its investments in inventory and other resources into cash flows from sales.
Looking at the data provided, we see that the cash conversion cycle for CorVel Corp has fluctuated over the past five years. It stood at 32.24 days on March 31, 2021, and increased to 36.24 days by March 31, 2022. Subsequently, it decreased to 31.35 days on March 31, 2023, and then increased again to 34.96 days as of March 31, 2024.
However, there seems to be an anomaly in the data for March 31, 2025, with an unusually high cash conversion cycle of 42,436.87 days, which is significantly out of line with the previous figures. This could be due to data entry errors or other irregularities that may need to be investigated.
Overall, a lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and turn its investments into cash quickly, while a higher cycle may suggest inefficiencies in the company's operations or challenges in converting investments into cash in a timely manner. Thus, for CorVel Corp, it is important to closely monitor and manage its cash conversion cycle to ensure optimal cash flow management and operational efficiency.