CSW Industrials Inc (CSWI)
Cash conversion cycle
| 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 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 97.63 | 85.24 | 83.58 | 85.53 | 85.34 | 89.47 | 91.99 | 111.88 | 112.84 | 111.30 | 108.05 | 95.99 | 91.22 | 97.57 | 114.50 | 113.50 | 60.62 | 68.00 | 65.49 | 64.23 |
| Days of sales outstanding (DSO) | days | 58.69 | 63.97 | 65.57 | 49.06 | 59.59 | 60.93 | 59.12 | 51.22 | 65.58 | 78.96 | 71.55 | 56.47 | 72.75 | 83.46 | 84.19 | 71.21 | 67.64 | 69.66 | 70.81 | 55.47 |
| Number of days of payables | days | 33.58 | 29.91 | 26.83 | 24.53 | 26.59 | 26.35 | 23.14 | 26.43 | 33.00 | 35.73 | 34.43 | 29.77 | 31.12 | 40.16 | 36.19 | 28.68 | 24.13 | 26.64 | 24.58 | 19.86 |
| Cash conversion cycle | days | 122.74 | 119.30 | 122.32 | 110.06 | 118.34 | 124.05 | 127.96 | 136.67 | 145.42 | 154.53 | 145.17 | 122.68 | 132.85 | 140.86 | 162.50 | 156.03 | 104.13 | 111.01 | 111.72 | 99.85 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 97.63 + 58.69 – 33.58
= 122.74
The cash conversion cycle of CSW Industrials Inc has fluctuated over the past 20 quarters, indicating changes in the efficiency of the company's operational and financial activities. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From December 2019 to December 2022, the cash conversion cycle showed an increasing trend, reaching its peak at 154.53 days in September 2022. This suggests a prolonged period for the company to convert its resources into cash.
However, from December 2022 to June 2023, there was a noticeable decrease in the cash conversion cycle, indicating an improvement in efficiency. The cycle fluctuated around the 120-day mark before increasing slightly in September 2023.
Subsequently, from December 2023 to September 2024, the cash conversion cycle continued to fluctuate without a clear trend, hovering around the 120-day mark. This variability could indicate potential challenges in managing inventory, collecting receivables, and paying suppliers efficiently.
Overall, the fluctuation in CSW Industrials Inc's cash conversion cycle over the analyzed period suggests that the company has experienced varying levels of efficiency in managing its working capital and converting assets into cash. Further analysis would be needed to determine the specific factors driving these fluctuations and identify opportunities for improvement in operational and financial processes.
Peer comparison
Sep 30, 2024