Cavco Industries Inc (CVCO)
Cash conversion cycle
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 64.40 | 61.59 | 62.51 | 61.71 | 60.49 | 48.91 | 54.89 | 66.14 | 73.09 | 67.81 | 70.11 | 59.49 | 55.12 | 48.25 | 49.72 | 46.96 | 49.85 | 49.44 | 53.64 | 56.49 |
| Days of sales outstanding (DSO) | days | 15.68 | 16.24 | 18.98 | 17.68 | 18.12 | 15.82 | — | — | 26.26 | — | — | — | 29.56 | 29.83 | 27.18 | 29.06 | 14.98 | 26.68 | 29.12 | 27.17 |
| Number of days of payables | days | 8.95 | 6.23 | 10.51 | 6.96 | 7.06 | 6.08 | 10.01 | 11.66 | 12.91 | 11.43 | 15.67 | 11.89 | 13.49 | 10.98 | 14.63 | 15.30 | 13.14 | 12.14 | 13.91 | 11.83 |
| Cash conversion cycle | days | 71.13 | 71.60 | 70.99 | 72.44 | 71.55 | 58.65 | 44.88 | 54.49 | 86.44 | 56.39 | 54.44 | 47.59 | 71.19 | 67.10 | 62.27 | 60.72 | 51.69 | 63.98 | 68.85 | 71.84 |
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 for Cavco Industries Inc has fluctuated over the past few quarters, indicating varying efficiency in managing its cash flows. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash received from customers.
In the most recent quarter, Mar 31, 2024, the company's cash conversion cycle was 71.13 days. This means that on average, Cavco Industries Inc takes 71.13 days to convert its investments in inventory and other resources into cash received from customers.
Looking at the trend over the past few quarters, we can see that the company experienced a notable increase in the cash conversion cycle from the previous quarter, Dec 31, 2023, where it was 71.60 days. This suggests that the company's efficiency in managing its working capital slightly decreased during this period.
Comparing the current period to historical data, the cash conversion cycle for Cavco Industries Inc has generally been consistently above 60 days, indicating that the company may have an extended time frame in converting its investments into cash flow, which could potentially affect its liquidity and overall operational efficiency. Further analysis of the company's inventory turnover, accounts receivable turnover, and accounts payable turnover ratios could provide additional insights into the underlying factors driving these trends in the cash conversion cycle.