CSW Industrials Inc (CSWI)
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 | 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 | 107.44 |
| Days of sales outstanding (DSO) | days | 63.02 | 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 | 69.68 |
| Number of days of payables | days | 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 | 42.09 |
| Cash conversion cycle | days | 168.47 | 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 | 135.02 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 146.66 + 63.02 – 41.22
= 168.47
The cash conversion cycle of CSW Industrials Inc has shown fluctuations over the period, indicating changes in its efficiency of managing cash flows related to its operations.
The company's cash conversion cycle ranged from a high of 203.91 days on December 31, 2020, to a low of 135.02 days on June 30, 2020. This volatile nature suggests variations in the company's ability to efficiently convert its resources into cash.
However, there seems to be an overall improving trend in the cash conversion cycle from 2020 to 2024. The cycle decreased steadily from December 31, 2020, to December 31, 2024, reaching a low of 139.60 days, indicating potential enhancements in the management of receivables, inventory, and payables.
The decrease in the cash conversion cycle implies that CSW Industrials Inc is becoming more efficient in generating cash from its operations. A shorter cash conversion cycle indicates that the company is able to turn its investments in inventory and receivables into cash more quickly, which can help improve liquidity and overall financial performance.
Overall, the trend towards a decreasing cash conversion cycle is a positive indicator of improved cash flow management and operational efficiency for CSW Industrials Inc.
Peer comparison
Mar 31, 2025