Cavco Industries Inc (CVCO)
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 | 64.40 | 60.49 | 73.09 | 55.12 | 49.85 |
| Days of sales outstanding (DSO) | days | 15.68 | 18.12 | 26.26 | 29.56 | 14.98 |
| Number of days of payables | days | 8.95 | 7.06 | 12.91 | 13.49 | 13.14 |
| Cash conversion cycle | days | 71.13 | 71.55 | 86.44 | 71.19 | 51.69 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.40 + 15.68 – 8.95
= 71.13
The cash conversion cycle of Cavco Industries Inc has fluctuated over the past five years, ranging from as low as 51.69 days in 2020 to as high as 86.44 days in 2022. The company's ability to convert its investment in inventory into cash and then back into cash from accounts receivable has shown some variability. Overall, the trend suggests that Cavco Industries Inc has been relatively efficient in managing its working capital and converting assets into cash, with a minor increase in the cash conversion cycle in 2024 compared to the previous year. Further analysis and comparison with industry benchmarks would provide a more in-depth understanding of the company's performance in this area.