Edgewell Personal Care Co (EPC)
Cash conversion cycle
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 137.11 | 127.01 | 111.06 | 107.27 | 111.02 |
| Days of sales outstanding (DSO) | days | 27.36 | 29.83 | 34.87 | 38.47 | 43.93 |
| Number of days of payables | days | 54.13 | 64.68 | 67.31 | 62.12 | 69.25 |
| Cash conversion cycle | days | 110.34 | 92.16 | 78.63 | 83.62 | 85.70 |
September 30, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 137.11 + 27.36 – 54.13
= 110.34
The cash conversion cycle of Edgewell Personal Care Co has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle increased to 103.26 days from 92.97 days in 2022. This suggests that Edgewell Personal Care Co took longer to convert its investments in inventory and accounts receivable into cash. The increase in the cash conversion cycle may indicate less efficient working capital management.
Comparing 2023 to 2021, the cash conversion cycle experienced a notable increase from 79.63 days to 103.26 days. This indicates that the company's ability to convert its resources into cash has declined significantly over this period. Moreover, when compared to 2020 and 2019, the cash conversion cycle remained relatively high.
In summary, Edgewell Personal Care Co experienced an increase in its cash conversion cycle in 2023, suggesting potential inefficiencies in managing its working capital. The company may need to focus on improving its inventory and accounts receivable management to shorten its cash conversion cycle and enhance its cash flow efficiency.
Peer comparison
Sep 30, 2023