Ethan Allen Interiors Inc (ETD)

Cash conversion cycle

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Days of inventory on hand (DOH) days 91.18 82.67 94.73 86.71 172.58
Days of sales outstanding (DSO) days 3.82 5.34 7.60 4.81 5.01
Number of days of payables days
Cash conversion cycle days 95.00 88.01 102.32 91.52 177.58

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.18 + 3.82 – —
= 95.00

The cash conversion cycle for Ethan Allen Interiors Inc has shown fluctuations over the past five years. In the most recent year ending June 30, 2024, the company's cash conversion cycle stood at 95.00 days, indicating that it takes approximately 95 days for the company to convert its investments in inventory and other resources into cash flows from sales.

Compared to the prior year, the cash conversion cycle increased from 88.01 days in June 2023 to 95.00 days in June 2024. This suggests that the company took longer to convert its resources into cash during this period.

Looking further back, the cash conversion cycle was 102.32 days in June 2022 and 91.52 days in June 2021, showing some volatility in the company's operating efficiency. However, the highest cash conversion cycle was recorded in June 2020 at 177.58 days, indicating a significant improvement in the management of working capital since then.

Overall, the fluctuation in Ethan Allen Interiors Inc's cash conversion cycle over the past years may indicate varying efficiency in managing the company's cash, inventory, and receivables. An increasing trend in the cash conversion cycle may signify challenges in converting investments into cash, potentially leading to liquidity issues. Conversely, a decreasing trend may indicate improved operating efficiency and better management of working capital.


Peer comparison

Jun 30, 2024

Company name
Symbol
Cash conversion cycle
Ethan Allen Interiors Inc
ETD
95.00
MasterBrand Inc.
MBC
42.00