Cavco Industries Inc (CVCO)
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 | — | 60.05 | 62.27 | 64.57 | 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 |
| Days of sales outstanding (DSO) | days | 45.55 | 30.57 | 32.53 | 31.73 | 28.72 | 26.29 | 28.67 | 26.72 | 25.62 | 21.52 | 25.63 | 31.54 | 33.50 | 30.53 | 36.95 | 31.48 | 34.36 | 35.24 | 31.82 | 33.79 |
| Number of days of payables | days | — | 6.44 | 10.02 | 8.29 | 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 | 13.19 | 15.30 |
| Cash conversion cycle | days | 45.55 | 84.18 | 84.79 | 88.01 | 84.17 | 81.65 | 80.67 | 81.48 | 79.05 | 64.34 | 70.51 | 86.02 | 93.68 | 86.92 | 91.39 | 79.08 | 75.99 | 72.51 | 68.36 | 65.45 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 45.55 – —
= 45.55
The cash conversion cycle is an important indicator of a company's efficiency in managing its working capital. It represents the time it takes for a company to convert its investments in inventory and other inputs into cash flows from sales.
Analyzing the data provided for Cavco Industries Inc, we can see fluctuations in the cash conversion cycle over the quarters. Initially, from June 30, 2020, to September 30, 2021, the cash conversion cycle showed an increasing trend, reaching its peak at 91.39 days in September 30, 2021. This suggests that the company may have been taking longer to convert its inventory and accounts receivable into cash during this period.
From December 31, 2021, to December 31, 2024, the cash conversion cycle fluctuated within a range but generally remained in the 80-90 days range. This indicates that Cavco Industries Inc continued to face challenges in optimizing its working capital efficiency during this time.
In the most recent quarter, March 31, 2025, the cash conversion cycle significantly improved, dropping to only 45.55 days. This sharp decline could suggest that the company made operational changes to streamline its processes and convert inventory and receivables into cash more efficiently.
Overall, the analysis of Cavco Industries Inc's cash conversion cycle points to fluctuations in operational efficiency in managing working capital over the quarters, with potential areas for improvement in optimizing cash flows and enhancing liquidity.
Peer comparison
Mar 31, 2025