Enerpac Tool Group Corp (EPAC)
Cash conversion cycle
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 102.61 | 97.62 | 90.01 | 113.36 | 114.23 | 108.13 | 99.86 | 103.35 | 107.66 | 104.30 | 96.33 | 99.85 | 101.99 | 98.39 | 91.44 | 96.51 | 85.12 | 82.48 | 77.80 | 110.98 |
| Days of sales outstanding (DSO) | days | 59.64 | 57.67 | 59.58 | 64.13 | 62.60 | 61.52 | 68.21 | 75.63 | 74.47 | 75.88 | 71.27 | 83.09 | 76.48 | 70.90 | 62.28 | 63.37 | 67.08 | 69.28 | 70.17 | 92.78 |
| Number of days of payables | days | 54.50 | 55.47 | 60.78 | 57.45 | 65.83 | 89.06 | 86.55 | 78.19 | 79.92 | 79.18 | 79.21 | 80.01 | 70.67 | 65.34 | 59.58 | 63.70 | 67.94 | 71.36 | 77.53 | 83.54 |
| Cash conversion cycle | days | 107.75 | 99.82 | 88.82 | 120.04 | 111.00 | 80.59 | 81.51 | 100.79 | 102.22 | 101.01 | 88.39 | 102.92 | 107.79 | 103.95 | 94.14 | 96.17 | 84.26 | 80.40 | 70.45 | 120.23 |
February 29, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 102.61 + 59.64 – 54.50
= 107.75
The cash conversion cycle of Enerpac Tool Group Corp fluctuated over the period provided. The company's cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
The cycle ranged from a low of 70.45 days to a high of 120.23 days, indicating variation in the efficiency of managing its working capital over time. A shorter cycle is generally more favorable as it signifies that the company is able to quickly convert its investments into cash.
It is important to analyze the underlying factors that contribute to the changes in the cash conversion cycle over time. A longer cycle may result from increased inventory holding periods, extended accounts receivable collection times, or delayed accounts payable payments. Conversely, a shorter cycle may indicate improvements in inventory management, faster collection of receivables, or more efficient payables management.
Overall, Enerpac Tool Group Corp should focus on continuously monitoring and optimizing its cash conversion cycle to improve its working capital management and overall financial performance.
Peer comparison
Feb 29, 2024