CSW Industrials, Inc. (CSW)
Cash conversion cycle
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 154.44 | 146.66 | 156.29 | 145.47 | 127.27 | 124.46 | 126.96 | 125.57 | 131.06 | 134.12 | 150.91 | 152.55 | 149.87 | 147.13 | 132.58 | 128.26 | 137.44 | 152.73 | 177.55 | 93.10 |
| Days of sales outstanding (DSO) | days | 71.51 | 65.55 | 48.81 | 58.78 | 64.08 | 66.58 | 49.06 | 59.59 | 60.92 | 59.12 | 51.22 | 65.58 | 78.96 | 71.55 | 56.47 | 72.75 | 83.47 | 84.19 | 71.23 | 67.66 |
| Number of days of payables | days | 45.81 | 41.22 | 40.73 | 50.03 | 44.67 | 39.95 | 36.42 | 39.13 | 38.60 | 33.75 | 35.65 | 44.61 | 48.10 | 46.89 | 41.13 | 43.76 | 56.58 | 50.52 | 44.87 | 37.06 |
| Cash conversion cycle | days | 180.14 | 171.00 | 164.37 | 154.22 | 146.68 | 151.09 | 139.60 | 146.03 | 153.38 | 159.49 | 166.48 | 173.52 | 180.72 | 171.80 | 147.93 | 157.26 | 164.33 | 186.40 | 203.91 | 123.70 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 154.44 + 71.51 – 45.81
= 180.14
The analysis of CSW Industrials, Inc.'s cash conversion cycle (CCC) over the period from September 2020 to June 2025 reveals notable trends in working capital management efficiency. Initially, the CCC decreased markedly from 123.70 days as of September 30, 2020, to a peak of 203.91 days on December 31, 2020. This suggests a significant elongation in the time taken to convert investments ininventory and receivables into cash during that period, possibly due to changes in operational or credit policies or shifts in industry conditions.
Subsequently, from December 2020 onward, there was a consistent downward trend in the CCC, reaching 146.68 days by June 30, 2024. This reduction indicates improvements in operational efficiency, shorter receivables collection periods, or more rapid inventory turnover. The sustained decrease during 2021 and into 2022 reflects ongoing efforts to optimize working capital management.
Between June 2024 and June 2025, the CCC experienced an upward movement from 146.68 days to 180.14 days. This increase suggests a potential slowdown in collection efficiency, longer inventory cycles, or changes in supplier or customer payment terms, which may point to evolving operational challenges or strategic adjustments.
Overall, the data demonstrates a pattern of initial volatility followed by a period of improved efficiency, culminating in a renewed elongation of the cash conversion cycle towards mid-2025. This indicates that while the company was able to shorten its working capital cycle during early to mid-2020s, recent trends have partially reversed, which may impact liquidity and operational capital management moving forward.
Peer comparison
Jun 30, 2025