CorVel Corp (CRVL)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 64.04 | 61.90 | 57.55 | 55.70 | 54.70 | 57.86 | 59.81 | 58.92 | 62.08 | 54.60 | 54.79 | 54.58 | 54.17 | 51.67 | 61.33 | 57.33 | 52.67 | 40.52 | 43.87 | 40.97 |
| Number of days of payables | days | 8.55 | 8.02 | 8.43 | 8.30 | 8.66 | 8.70 | 10.08 | 12.02 | 9.14 | 7.94 | 9.01 | 8.15 | 9.13 | 8.81 | 8.10 | 9.09 | 10.39 | 11.89 | 11.08 | 12.30 |
| Cash conversion cycle | days | 55.49 | 53.88 | 49.13 | 47.40 | 46.04 | 49.16 | 49.73 | 46.90 | 52.93 | 46.66 | 45.77 | 46.43 | 45.04 | 42.86 | 53.23 | 48.24 | 42.28 | 28.62 | 32.79 | 28.67 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 64.04 – 8.55
= 55.49
CorVel Corp's cash conversion cycle has fluctuated over the past few quarters. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources back into cash.
The company's cash conversion cycle ranged from a low of 28.62 days in March 2020 to a high of 55.49 days in March 2024. A shorter cash conversion cycle generally indicates that the company is efficient in managing its working capital and can quickly turn its assets into cash.
CorVel Corp's recent cash conversion cycles have been relatively stable, hovering around the 50-day mark. However, it is noticeable that there was a significant increase in the cycle from the end of 2021 through the first quarter of 2024, indicating potential delays in converting investments into cash during this period.
Overall, the trend in CorVel Corp's cash conversion cycle suggests that the company may have experienced challenges in efficiently managing its working capital and converting its assets into cash in a timely manner during certain quarters. Further analysis of the underlying factors contributing to these fluctuations would be necessary to determine the root causes and evaluate the overall effectiveness of the company's cash management strategies.