CorVel Corp (CRVL)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 7.22 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 42.44 | 44.48 | 44.20 | 43.68 | 44.57 | 43.72 | 42.28 | 41.94 | 41.16 | 42.90 | 44.88 | 44.18 | 46.65 | 40.92 | 42.43 | 42.64 | 42.75 | 41.88 | 47.58 | 43.08 |
| Number of days of payables | days | — | 7.72 | 7.34 | 6.85 | 9.40 | 8.93 | 9.50 | 9.35 | 9.81 | 9.84 | 11.42 | 13.66 | 10.40 | 9.07 | 10.33 | 9.37 | 10.51 | 10.11 | 9.28 | 10.41 |
| Cash conversion cycle | days | 42.44 | 36.76 | 44.08 | 36.83 | 35.16 | 34.79 | 32.78 | 32.60 | 31.35 | 33.05 | 33.46 | 30.52 | 36.24 | 31.84 | 32.09 | 33.27 | 32.24 | 31.77 | 38.30 | 32.67 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 42.44 – —
= 42.44
The cash conversion cycle of CorVel Corp has experienced fluctuations over the periods outlined in the data. The cash conversion cycle represents the time it takes for a company to convert its investments in raw materials, production, and other inputs into cash inflows from sales.
Analyzing the data provided, we observe that the cash conversion cycle ranged from a low of 30.52 days on June 30, 2022, to a high of 44.08 days on September 30, 2024. Generally, a shorter cash conversion cycle indicates that the company is efficient in managing its working capital and generating cash from its operations.
CorVel Corp's cash conversion cycle varied around the 30 to 40 days range, showing some consistency in its working capital management. However, an increase in the cash conversion cycle beyond the historical average, as seen on September 30, 2024, may indicate potential issues with receivables collection, inventory management, or payment to suppliers.
It is essential for CorVel Corp to monitor its cash conversion cycle closely and address any inefficiencies that may arise to ensure optimal working capital management and cash flow generation. Additionally, comparisons with industry benchmarks and historical trends can provide further insights into the company's operational efficiency and financial health.