The Hain Celestial Group Inc (HAIN)

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	54.82	54.74	54.16	59.33	59.33	61.28	67.38	64.98	63.27	61.95	61.84	57.59	56.49	79.06	74.26	70.90	61.19	58.39	67.45	67.68
Days of sales outstanding (DSO)	days	38.97	41.48	41.02	33.39	33.47	36.21	34.87	33.60	32.93	30.60	31.73	34.16	32.12	34.27	32.38	29.28	30.38	41.32	35.13	33.89
Number of days of payables	days	37.64	34.83	31.01	26.94	25.77	28.35	31.91	32.49	35.90	37.18	38.44	35.50	34.03	52.95	51.60	44.77	42.17	44.57	44.64	42.55
Cash conversion cycle	days	56.15	61.38	64.17	65.78	67.03	69.14	70.34	66.09	60.30	55.37	55.12	56.25	54.58	60.38	55.04	55.41	49.41	55.14	57.94	59.03

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 54.82 + 38.97 – 37.64
= 56.15

The cash conversion cycle of The Hain Celestial Group Inc has fluctuated over the past few quarters, indicating variations in the company's efficiency in managing its cash flow.

From December 2019 to March 2020, there was a noticeable increase in the cash conversion cycle from 49.41 days to 60.38 days. This suggests that the company took longer to convert its investments in inventory back into cash during this period.

Subsequently, from March 2020 to December 2021, there was a general decreasing trend in the cash conversion cycle, reaching its lowest point of 55.12 days in March 2022. This indicated an improvement in the company's efficiency in managing its working capital and cash flow during these quarters.

However, from March 2022 to June 2023, there was a gradual increase in the cash conversion cycle, peaking at 69.14 days in March 2023. This increase may have been caused by factors such as longer inventory holding periods or slower collection of accounts receivable.

The trend reversed from June 2023 onwards, with the cash conversion cycle decreasing consistently. This improvement could signify better management of working capital, leading to quicker conversion of inventory into cash.

Overall, the fluctuations in the cash conversion cycle highlight the importance of closely monitoring working capital components such as inventory turnover, accounts receivable collection, and accounts payable management to ensure efficient cash flow management at The Hain Celestial Group Inc.