Cavco Industries Inc (CVCO)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.51 | 64.40 | 60.49 | 73.09 | 55.12 |
| Days of sales outstanding (DSO) | days | 19.17 | 28.71 | 25.62 | 33.50 | 34.36 |
| Number of days of payables | days | — | 8.95 | 7.06 | 12.91 | 13.49 |
| Cash conversion cycle | days | 78.68 | 84.16 | 79.05 | 93.68 | 75.99 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.51 + 19.17 – —
= 78.68
The cash conversion cycle for Cavco Industries Inc has shown fluctuations over the past five years. Starting from 75.99 days on March 31, 2021, it increased to 93.68 days on March 31, 2022, indicating a significant extension in the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
Subsequently, there was a decrease in the cash conversion cycle to 79.05 days on March 31, 2023, followed by a slight increase to 84.16 days on March 31, 2024. However, by March 31, 2025, the cycle declined to 78.68 days, approaching the level seen in 2023.
Overall, the trend suggests some volatility in Cavco Industries Inc's ability to efficiently manage its working capital and convert resources into cash. The company may benefit from analyzing the factors contributing to the fluctuations in the cash conversion cycle to streamline its operations and improve cash flow management.
Peer comparison
Mar 31, 2025