Edgewell Personal Care Co (EPC)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 134.22 | 137.11 | 127.01 | 111.06 | 107.27 |
| Days of sales outstanding (DSO) | days | 26.58 | 27.36 | 29.83 | 34.87 | 38.47 |
| Number of days of payables | days | 61.67 | 54.13 | 64.68 | 67.31 | 62.12 |
| Cash conversion cycle | days | 99.13 | 110.34 | 92.16 | 78.63 | 83.62 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 134.22 + 26.58 – 61.67
= 99.13
The cash conversion cycle of Edgewell Personal Care Co has shown some fluctuations over the past five years. In 2024, the company's cash conversion cycle was 99.13 days, indicating the average number of days it takes for the company to convert its investments in raw materials into cash from sales.
Compared to the previous year, there was a slight improvement in the cash conversion cycle from 110.34 days in 2023 to 99.13 days in 2024. However, looking back further, the cycle was longer in 2023 compared to 2022 when it was 92.16 days. The cycle lengthened further in 2021 to 78.63 days and then increased again in 2020 to 83.62 days.
Overall, the trend indicates some variability in the efficiency of Edgewell Personal Care Co's cash conversion cycle over the past five years. It would be important for the company to monitor and manage factors affecting the cycle to ensure optimal working capital management and operational efficiency in the future.
Peer comparison
Sep 30, 2024