Hayward Holdings Inc (HAYW)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 153.66 | 109.01 | 113.34 | 120.72 | 101.80 | 104.75 | 99.09 | 84.05 | 79.31 | |||
| Days of sales outstanding (DSO) | days | 111.16 | 58.79 | 63.28 | — | 68.25 | — | — | — | 56.58 | |||
| Number of days of payables | days | 49.23 | 23.44 | 25.95 | 24.65 | 19.39 | 21.84 | 30.92 | 30.64 | 29.71 | |||
| Cash conversion cycle | days | 215.59 | 144.36 | 150.68 | 96.06 | 150.66 | 82.90 | 68.17 | 53.40 | 106.18 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 153.66 + 111.16 – 49.23
= 215.59
Hayward Holdings Inc's cash conversion cycle has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 206.84 days, which increased significantly from the previous quarter's 176.96 days. This indicates that the company took longer to convert its investments in inventory and other resources into cash during this period.
Compared to Q1 2023, the company's cash conversion cycle in Q4 2023 improved, as it decreased from 241.09 days to 206.84 days. Despite this improvement, the cycle in Q4 2023 was still higher than the levels observed in Q2 and Q3 of the same year.
Looking at the overall trend, the company experienced a relatively long cash conversion cycle during Q1 and Q4 of each year, which may suggest seasonal factors affecting the business. Management should closely monitor and potentially optimize the cash conversion cycle to ensure efficient cash flow management and overall liquidity of the company.
Peer comparison
Dec 31, 2023