Ethan Allen Interiors Inc (ETD)
Cash conversion cycle
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.18 | 90.54 | 84.49 | 86.77 | 82.67 | 80.59 | 84.05 | 87.42 | 94.73 | 103.34 | 94.19 | 93.20 | 86.71 | 99.79 | 114.31 | 142.28 | 172.58 | 165.46 | 158.67 | 166.98 |
| Days of sales outstanding (DSO) | days | 3.82 | 4.39 | 3.54 | 5.45 | 5.34 | 4.72 | 3.16 | 2.53 | 5.14 | 5.50 | 3.67 | 4.05 | 4.81 | 7.06 | 5.74 | 8.52 | 5.01 | 5.61 | 6.75 | 6.15 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 95.00 | 94.93 | 88.03 | 92.22 | 88.01 | 85.31 | 87.21 | 89.95 | 99.87 | 108.84 | 97.86 | 97.24 | 91.52 | 106.85 | 120.05 | 150.80 | 177.58 | 171.07 | 165.42 | 173.13 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.18 + 3.82 – —
= 95.00
The cash conversion cycle of Ethan Allen Interiors Inc has shown fluctuations over the past few quarters. The company's ability to convert its resources into cash has varied, with the cycle ranging from 85.31 days to 177.58 days.
In the most recent quarter, the cash conversion cycle was 95.00 days, indicating that it took the company approximately 95 days to convert its investments in inventory and accounts receivable into cash from sales. This represents a moderate level of efficiency in managing its working capital.
Looking back further, fluctuations in the cash conversion cycle can be observed, with some quarters showing longer cycles, such as in Q3 2020 and Q4 2020, where the cycle exceeded 150 days. This may suggest inefficiencies in managing inventory and collecting receivables during those periods.
Overall, the trend in the cash conversion cycle of Ethan Allen Interiors Inc demonstrates the company's ongoing efforts to optimize its working capital management. Further analysis and comparison with industry benchmarks could provide more insights into the company's performance in this area.