CSW Industrials, Inc. (CSW)
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 | 146.66 | 124.46 | 134.12 | 147.90 | 152.73 |
| Days of sales outstanding (DSO) | days | 65.55 | 65.68 | 59.12 | 71.55 | 84.19 |
| Number of days of payables | days | 41.22 | 39.95 | 33.75 | 47.13 | 50.52 |
| Cash conversion cycle | days | 171.00 | 150.19 | 159.49 | 172.32 | 186.41 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 146.66 + 65.55 – 41.22
= 171.00
The cash conversion cycle (CCC) of CSW Industrials, Inc. exhibits a decreasing trend from March 31, 2021, to March 31, 2024, followed by an increase in the subsequent year. Specifically, the CCC declined from approximately 186.41 days in 2021 to 159.49 days in 2023, indicating an improvement in the company’s efficiency in managing its cash flow cycle over this period. This reduction suggests that the company has become more effective in managing the time it takes to convert investments in inventory and receivables into cash, likely reflecting enhancements in inventory turnover and receivables collection.
However, the cycle increases again to around 171.00 days by March 31, 2025, signaling a potential deterioration in either accounts receivable collection, inventory management, or both. Overall, the trend demonstrates initial progress toward a more efficient cash management process, with the most favorable cycle observed as of 2023, followed by a reversal toward a lengthening cycle in 2025.
Peer comparison
Mar 31, 2025