Greenbrier Companies Inc (GBX)
Cash conversion cycle
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.23 | 98.35 | 93.49 | 92.32 | 85.82 | 94.34 | 102.49 | 111.44 | 111.38 | 121.45 | 132.48 | 139.07 | 138.08 | 127.41 | 102.37 | 84.25 | 79.24 | 93.02 | 94.29 | 95.24 |
| Days of sales outstanding (DSO) | days | 4.64 | 2.08 | 2.05 | 0.96 | 3.91 | 2.81 | 2.25 | 3.30 | 4.88 | 17.99 | 16.95 | 20.45 | 23.42 | 15.36 | 10.81 | — | 1.19 | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 98.87 | 100.43 | 95.54 | 93.28 | 89.72 | 97.15 | 104.75 | 114.74 | 116.26 | 139.43 | 149.43 | 159.52 | 161.49 | 142.77 | 113.18 | 84.25 | 80.43 | 93.02 | 94.29 | 95.24 |
August 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.23 + 4.64 – —
= 98.87
The cash conversion cycle of Greenbrier Companies Inc has fluctuated over the past few years, indicating variations in the efficiency of the company's working capital management. The cash conversion cycle represents the time taken by the company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent period, the cash conversion cycle stood at 98.87 days, which indicates that it takes approximately 98.87 days for Greenbrier Companies Inc to convert its investments in inventory to cash from sales. This suggests that the company's liquidity position and operational efficiency have slightly deteriorated compared to the previous period.
A longer cash conversion cycle may signify inefficiencies in managing inventory levels, slow collection of accounts receivable, or delays in paying accounts payable. On the other hand, a shorter cash conversion cycle is generally preferable as it indicates that the company is able to quickly convert its resources into cash.
Analyzing the trend over the historical data, there is evidence of volatility in the cash conversion cycle for Greenbrier Companies Inc. The cycle has shown fluctuations between 80.43 days to 161.49 days in the past two years. This variability may be a reflection of changes in the company's operational efficiency, sales patterns, inventory management, and customer credit policies.
Overall, assessing the cash conversion cycle can provide insights into the effectiveness of Greenbrier Companies Inc in managing its working capital and the efficiency of its operations in converting investments into cash.
Peer comparison
Aug 31, 2024