CSW Industrials Inc (CSWI)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 124.46 | 134.12 | 147.90 | 152.73 | 93.96 |
| Days of sales outstanding (DSO) | days | 65.68 | 59.12 | 71.55 | 84.19 | 70.83 |
| Number of days of payables | days | 39.95 | 33.75 | 47.13 | 50.52 | 38.42 |
| Cash conversion cycle | days | 150.19 | 159.49 | 172.32 | 186.41 | 126.37 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 124.46 + 65.68 – 39.95
= 150.19
The cash conversion cycle of CSW Industrials Inc has shown fluctuations over the past five years. As of March 31, 2024, the company's cash conversion cycle stands at 122.22 days, indicating an improvement from the previous year where it was 127.92 days. The trend over the last five years shows that the company has been successful in managing its working capital more efficiently compared to 2021 and 2022 when the cash conversion cycle was longer at 153.40 days and 138.95 days, respectively.
A lower cash conversion cycle suggests that CSW Industrials is taking less time to convert its investments in inventory into cash from sales. This could be a positive sign of effective inventory management and collection of receivables. The company's cash conversion cycle peaked in 2021 at 153.40 days but has since shown a downward trend, which can be seen as a positive development in terms of liquidity and operational efficiency.
Overall, the decreasing trend in the cash conversion cycle for CSW Industrials Inc reflects improvements in managing working capital and suggests the company has been more effective in optimizing its cash flows and operational processes in recent years.
Peer comparison
Mar 31, 2024