Edgewell Personal Care Co (EPC)
Cash conversion cycle
| 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 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 134.22 | 128.13 | 138.55 | 144.04 | 137.11 | 138.61 | 147.62 | 151.95 | 127.01 | 118.85 | 131.37 | 129.06 | 110.96 | 118.60 | 121.59 | 115.42 | 107.27 | 107.33 | 107.39 | 114.33 |
| Days of sales outstanding (DSO) | days | 26.58 | 34.76 | 33.62 | 28.51 | 27.36 | 30.79 | 36.56 | 27.32 | 29.83 | 33.70 | 38.82 | 35.07 | 34.87 | 34.42 | 44.58 | 39.52 | 38.47 | 39.95 | 42.37 | 37.37 |
| Number of days of payables | days | 61.67 | 58.66 | 61.32 | 54.51 | 54.13 | 66.51 | 66.94 | 68.92 | 64.68 | 68.65 | 68.79 | 68.98 | 67.24 | 71.28 | 66.59 | 62.57 | 62.12 | 60.22 | 60.09 | 60.78 |
| Cash conversion cycle | days | 99.13 | 104.24 | 110.85 | 118.04 | 110.34 | 102.90 | 117.24 | 110.36 | 92.16 | 83.90 | 101.40 | 95.14 | 78.58 | 81.73 | 99.57 | 92.37 | 83.62 | 87.07 | 89.67 | 90.92 |
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 for Edgewell Personal Care Co has fluctuated over the past few quarters. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, was 99.13 days as of September 30, 2024. This indicates that, on average, it took the company about 99 days to go from spending cash on inventory to receiving cash from customers.
The trend in the cash conversion cycle shows some variation, with peaks and troughs observed over the periods analyzed. A higher cash conversion cycle suggests that the company is taking longer to receive cash from its sales, which could indicate potential issues with collections or inventory management. Conversely, a lower cash conversion cycle could indicate more efficient operations in terms of turning inventory into sales and collecting cash.
Analyzing the cash conversion cycle over multiple quarters helps to assess the efficiency of Edgewell Personal Care Co's working capital management. By monitoring these trends, stakeholders can gain insights into the company's liquidity, operational efficiency, and overall financial health. A stable or decreasing trend in the cash conversion cycle over time may signal improved financial performance and effective management of working capital.
Peer comparison
Sep 30, 2024