Eagle Materials Inc (EXP)

Cash conversion cycle

		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	Jun 30, 2019
Days of inventory on hand (DOH)	days	79.50	72.44	66.47	66.94	65.17	56.06	52.13	56.02	59.24	55.73	54.71	59.32	64.85	62.87	54.53	59.07	67.62	51.59	62.15	69.28
Days of sales outstanding (DSO)	days	35.05	32.36	42.68	42.49	36.70	31.46	42.80	45.07	36.46	37.09	45.95	41.65	32.36	31.67	46.68	73.60	71.91	36.80	48.43	47.22
Number of days of payables	days	27.04	25.45	25.09	26.12	24.65	24.17	26.25	26.04	28.46	26.15	27.20	26.49	23.15	19.69	19.24	19.92	20.92	14.32	19.98	22.05
Cash conversion cycle	days	87.51	79.35	84.06	83.31	77.22	63.35	68.68	75.04	67.25	66.67	73.46	74.48	74.05	74.86	81.97	112.74	118.61	74.07	90.61	94.45

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 79.50 + 35.05 – 27.04
= 87.51

The cash conversion cycle of Eagle Materials Inc has shown fluctuation over the past several quarters. The cycle measures how long it takes for a company to convert its investments in inventory into cash receipts from sales.

For the most recent quarter, the cash conversion cycle was 87.51 days, which increased from the previous quarter's 79.35 days. This indicates that Eagle Materials took longer to convert its inventory investments into cash receipts in the current period.

Looking back over the last year, we can observe some variations in the cash conversion cycle. It reached a peak of 118.61 days in June 2020 and has since shown some improvements, with a low of 63.35 days in December 2022.

Overall, monitoring the cash conversion cycle is important for assessing the efficiency of Eagle Materials' working capital management. A longer cycle may tie up cash in inventory and accounts receivable, potentially impacting liquidity and overall financial performance. Further analysis and comparison with industry benchmarks would provide more insights into the company's operational efficiency in managing cash flow.