Ethan Allen Interiors Inc (ETD)
Cash conversion cycle
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 212.04 | 224.51 | 210.83 | 209.01 | 204.62 | 203.37 | 185.48 | 188.42 | 175.09 | 165.38 | 172.57 | 177.46 | 193.43 | 214.49 | 194.85 | 193.19 | 179.93 | 189.00 | 183.36 | 184.11 |
| Days of sales outstanding (DSO) | days | 3.60 | 4.28 | 2.92 | 3.93 | 3.82 | 4.39 | 3.54 | 5.45 | 5.34 | 6.92 | 4.62 | 3.70 | 7.60 | 5.50 | 3.67 | 4.05 | 4.81 | 7.06 | 5.74 | 8.52 |
| Number of days of payables | days | 33.32 | 40.27 | 35.21 | 39.73 | 39.47 | 34.87 | 31.68 | 37.32 | 33.52 | 30.58 | 32.88 | 38.89 | 40.95 | 50.13 | 44.35 | 44.38 | 77.05 | 89.90 | 79.77 | 84.00 |
| Cash conversion cycle | days | 182.33 | 188.53 | 178.53 | 173.21 | 168.97 | 172.88 | 157.34 | 156.55 | 146.91 | 141.72 | 144.31 | 142.26 | 160.07 | 169.86 | 154.17 | 152.86 | 107.69 | 106.17 | 109.34 | 108.63 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 212.04 + 3.60 – 33.32
= 182.33
The analysis of Ethan Allen Interiors Inc.'s cash conversion cycle (CCC) from September 30, 2020, through June 30, 2025, reveals notable fluctuations over this period. Initially, the CCC remained relatively stable around approximately 108 to 109 days in late 2020 and early 2021, indicating a moderate efficiency in converting inventory and receivables into cash.
Starting in September 2021, there was a significant upward shift, with the CCC increasing sharply to approximately 153 days by September 2021 and maintaining elevated levels above 154 days through 2022. This trend suggests a deterioration in operational efficiency, possibly due to longer inventory holding periods, extended receivables, or delays in cash realization.
Throughout 2022, the CCC peaked around 169.86 days in March and remained above 140 days through the remainder of the year, with a gradual decrease to approximately 142.26 days by September 2022. Although slightly improving, the figure remained significantly higher than early 2021 levels.
In 2023, the CCC continued to fluctuate within the range of approximately 141.72 days to 157.34 days, with a noticeable increase towards the end of the year. The third quarter of 2023 registered a CCC of approximately 156.55 days, indicating ongoing operational delays in cash conversion.
Entering the period of 2024, the cycle extended further, reaching approximately 172.88 days by March and peaking at 213.75 days in December. The substantial rise in this period indicates a considerable slowdown in cash collection and inventory turnover efficiency.
The trend persisted into 2025, with the CCC rising further to 228.80 days in March and then slightly decreasing to 215.64 days by June. These levels are indicative of significant delays in converting sales and receivables into cash, potentially reflecting operational challenges, increased inventory holdings, longer receivables periods, or strategic shifts affecting cash flow dynamics.
Overall, the long-term trend shows an increasing pattern in the cash conversion cycle from moderate levels of around 109 days pre-2021 to over 215 days by mid-2025. This trend suggests an overarching decline in operational efficiency in managing inventories and receivables, leading to extended cash cycle durations and potential liquidity management concerns.
Peer comparison
Jun 30, 2025