Edgewell Personal Care Co (EPC)
Cash conversion cycle
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 111.02 | 115.08 | 119.90 |
| Days of sales outstanding (DSO) | days | 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 | 43.93 | 48.73 | 49.64 |
| Number of days of payables | days | 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 | 69.25 | 68.52 | 68.87 |
| Cash conversion cycle | days | 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 | 85.70 | 95.29 | 100.67 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 144.04 + 28.51 – 54.51
= 118.04
The cash conversion cycle for Edgewell Personal Care Co has fluctuated over the past eight quarters, ranging from a low of 87.77 days in Q3 2022 to a high of 113.79 days in Q1 2023.
The cash conversion cycle measures how quickly a company can convert its inventory and accounts receivable into cash. A longer cash conversion cycle indicates that the company takes longer to collect cash from sales and manage its inventory.
In the most recent quarter, Q1 2024, the cash conversion cycle increased to 111.68 days compared to the previous quarter, Q4 2023, where it was 103.26 days. This suggests a potential delay in collecting cash from sales or managing inventory efficiently.
Overall, Edgewell Personal Care Co should aim to keep its cash conversion cycle as low as possible to improve its cash flow and efficiency in managing its working capital. Monitoring this metric over time can help the company identify any underlying issues and implement strategies to optimize its cash conversion cycle.
Peer comparison
Dec 31, 2023