Hasbro Inc (HAS)
Cash conversion cycle
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.53 | 81.10 | 91.37 | 99.17 | 81.56 | 76.83 | 77.83 | 58.32 | 50.43 | 71.82 | 66.33 | 60.33 | 52.09 | 69.86 | 76.01 | 60.18 | 69.08 | 88.04 | 84.41 | 73.86 |
| Days of sales outstanding (DSO) | days | 75.09 | 74.59 | 57.52 | — | 70.57 | 70.08 | 48.99 | 52.57 | 85.30 | 87.92 | 53.24 | 54.03 | 92.94 | 101.54 | 66.94 | 69.07 | 109.08 | 110.47 | 62.86 | 50.70 |
| Number of days of payables | days | 35.42 | 48.76 | 45.40 | 50.06 | 51.49 | 50.90 | 48.79 | 37.26 | 53.00 | 78.96 | 50.77 | 43.87 | 56.03 | 60.31 | 45.16 | 41.78 | 53.26 | 74.89 | 49.33 | 35.19 |
| Cash conversion cycle | days | 74.20 | 106.92 | 103.48 | 49.11 | 100.64 | 96.01 | 78.03 | 73.62 | 82.73 | 80.78 | 68.80 | 70.49 | 89.01 | 111.09 | 97.79 | 87.47 | 124.90 | 123.62 | 97.94 | 89.38 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.53 + 75.09 – 35.42
= 74.20
The cash conversion cycle of Hasbro, Inc. has displayed fluctuations over the past eight quarters. In Q2 2023, the cycle reached its highest level at 131.92 days, indicating that the company took longer to convert its investments in inventory into cash. This trend improved in Q4 2023, where the cycle decreased to 73.25 days, suggesting a more efficient management of working capital.
On average, for the past eight quarters, Hasbro's cash conversion cycle was approximately 115.22 days. This metric reflects the time it takes for the company to sell inventory, collect receivables, and pay suppliers. A shorter cash conversion cycle is generally favorable as it signifies that the company is able to quickly turn its investments into cash, leading to improved liquidity and operational efficiency.
It is essential for management to continuously monitor and manage the cash conversion cycle to ensure optimal working capital management and sustainable business operations. Overall, Hasbro's cash conversion cycle fluctuated over the periods analyzed, but the recent improvement in Q4 2023 is a positive sign of efficient cash flow management.