Haynes International Inc (HAYN)
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 | 278.59 | 285.43 | 294.55 | 296.54 | 309.82 | 301.74 | 315.64 | 284.34 | 279.49 | 264.92 | 250.14 | 244.62 | 241.84 | 238.29 | 233.31 | 230.56 | 221.80 | 201.12 | 210.39 | 215.06 |
| Days of sales outstanding (DSO) | days | 59.89 | 68.19 | 58.75 | 67.10 | 64.70 | 71.02 | 65.96 | 70.80 | 58.66 | 64.22 | 60.33 | 57.20 | 47.43 | 52.78 | 48.77 | 50.99 | 49.44 | 58.72 | 60.63 | 64.98 |
| Number of days of payables | days | 31.42 | 36.40 | 40.17 | 38.17 | 50.18 | 46.32 | 60.94 | 48.72 | 40.99 | 50.83 | 34.14 | 25.54 | 18.49 | 17.00 | 17.67 | 23.28 | 31.61 | 26.81 | 33.65 | 32.27 |
| Cash conversion cycle | days | 307.05 | 317.22 | 313.13 | 325.47 | 324.34 | 326.44 | 320.65 | 306.42 | 297.16 | 278.31 | 276.33 | 276.27 | 270.78 | 274.07 | 264.41 | 258.27 | 239.63 | 233.02 | 237.38 | 247.77 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 278.59 + 59.89 – 31.42
= 307.05
The cash conversion cycle for Haynes International Inc. has been fluctuating over the past eight quarters. The cycle measures the time it takes for a company to convert its resources, such as inventory and accounts receivable, into cash flows from sales.
In Q1 2024, the cash conversion cycle decreased to 331.62 days compared to the previous quarter, indicating an improvement in the company's efficiency in managing its working capital. However, the cycle increased in Q4 2023 to 341.83 days, which suggests a temporary setback in the company's ability to convert assets into cash.
Throughout the quarters, there have been fluctuations in the cash conversion cycle, with Q1 2023 having a cycle of 354.08 days and Q3 2022 having a cycle of 354.60 days. These fluctuations indicate that Haynes International Inc. may be experiencing challenges in effectively managing its inventory, collecting accounts receivable, or delaying payments to suppliers.
Overall, monitoring the trend of the cash conversion cycle can provide insights into the company's liquidity management and operational efficiency. It is essential for Haynes International Inc. to strive for a consistent decrease in this cycle over time to optimize its cash flow and financial performance.
Peer comparison
Dec 31, 2023