Acushnet Holdings Corp (GOLF)
Cash conversion cycle
| 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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 165.62 | 160.48 | 155.44 | 171.77 | 198.30 | 167.80 | 181.88 | 207.80 | 225.70 | 180.82 | 158.99 | 156.24 | 146.54 | 117.23 | 110.55 | 142.67 | 166.88 | 152.13 | 181.21 | 165.39 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 165.62 | 160.48 | 155.44 | 171.77 | 198.30 | 167.80 | 181.88 | 207.80 | 225.70 | 180.82 | 158.99 | 156.24 | 146.54 | 117.23 | 110.55 | 142.67 | 166.88 | 152.13 | 181.21 | 165.39 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 165.62 + — – —
= 165.62
The cash conversion cycle of Acushnet Holdings Corp, a key measure of its efficiency in managing cash flows, has shown fluctuations over the analyzed period. The cash conversion cycle calculates the time it takes for a company to convert its investments in inventory into cash from sales to customers.
From March 31, 2020, to June 30, 2021, the company's cash conversion cycle decreased steadily from 165.39 days to 110.55 days, indicating an improvement in inventory management and quicker conversion of sales into cash. However, from June 30, 2021, to December 31, 2024, the trend became more volatile, with periods of increase and decrease.
The cycle peaked at 225.70 days on December 31, 2022, reflecting a slower conversion process during that period. The company managed to bring down the cycle to 155.44 days by June 30, 2024, showcasing efforts to enhance efficiency in working capital management.
Overall, Acushnet Holdings Corp should continue monitoring its cash conversion cycle closely to identify trends and make necessary adjustments to optimize cash flow and working capital operations for sustainable growth and profitability.
Peer comparison
Dec 31, 2024