Ethan Allen Interiors Inc (ETD)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 212.04 | 204.79 | 175.09 | 193.43 | 179.93 |
| Days of sales outstanding (DSO) | days | 3.60 | 3.82 | 5.34 | 7.60 | 4.81 |
| Number of days of payables | days | 33.32 | 39.50 | 33.52 | 40.95 | 77.05 |
| Cash conversion cycle | days | 182.33 | 169.11 | 146.91 | 160.07 | 107.69 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 212.04 + 3.60 – 33.32
= 182.33
The cash conversion cycle (CCC) of Ethan Allen Interiors Inc has exhibited notable fluctuations over the period from June 30, 2021, to June 30, 2025. On June 30, 2021, the company’s CCC was approximately 107.69 days, indicating that it took around this duration to convert investments in inventory and receivables into cash flows from sales, after accounting for its payables.
By June 30, 2022, the CCC increased significantly to approximately 160.07 days, representing an elongation of approximately 52.38 days. This suggests that the company experienced either a lengthening of the days inventory remained before sale, a delay in receivables collection, or a combination of both, leading to a slower cash conversion process.
The trend continued into June 30, 2023, with the CCC slightly decreasing to approximately 146.91 days. Despite the reduction, the cycle remained substantially longer than in 2021, indicating persistent challenges or strategic changes in working capital management.
However, subsequent data from June 30, 2024, shows a further increase in the CCC to roughly 169.11 days. This indicates a further elongation of the time period between cash outlays for inventory and cash inflows from sales, possibly due to extended inventory holding periods, slower receivables collections, or more aggressive payment terms with suppliers.
The most recent data for June 30, 2025, reflects a continued increase to approximately 182.33 days. Over this four-year span, the CCC has increased by about 74.64 days from the 2021 level, signaling a prolonged cash cycle. This trend suggests that Ethan Allen Interiors Inc has experienced an increasingly extended period to convert its investments into cash, which could impact liquidity and working capital management.
In summary, Ethan Allen Interiors Inc’s cash conversion cycle has demonstrated a persistent upward trajectory over the analyzed period. The trend indicates that the company is taking longer to realize cash from its operating cycle, which may warrant further analysis into operational efficiencies, inventory management, receivables collection practices, and supplier payment strategies.
Peer comparison
Jun 30, 2025