Enerpac Tool Group Corp (EPAC)
Cash conversion cycle
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 92.21 | 99.95 | 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 |
| Days of sales outstanding (DSO) | days | 64.60 | 66.42 | 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 |
| Number of days of payables | days | 54.87 | 52.64 | 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 |
| Cash conversion cycle | days | 101.95 | 113.73 | 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 |
August 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 92.21 + 64.60 – 54.87
= 101.95
The cash conversion cycle of Enerpac Tool Group Corp has fluctuated over the past few periods. It measures the time it takes for the company to convert its resources invested in inventory and accounts receivable back into cash.
Analyzing the data from the table, we observe that the cash conversion cycle ranged between 80.40 days to 120.04 days over the last 20 periods. The longer the cash conversion cycle, the longer the company's operating cycle and the more working capital is tied up in the operations.
In some periods, such as May 31, 2023, and Nov 30, 2022, Enerpac Tool Group Corp experienced extended cash conversion cycles, indicating potential inefficiencies in managing inventory and collecting receivables. On the other hand, periods like Aug 31, 2020, and Feb 29, 2020, showed relatively shorter cash conversion cycles, suggesting effective management of working capital.
It is vital for Enerpac Tool Group Corp to monitor its cash conversion cycle consistently to optimize its operations and financial performance. By reducing this cycle, the company can improve cash flow, reduce the need for external financing, and enhance overall liquidity.
Peer comparison
Aug 31, 2024