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

Company name
Symbol
Cash conversion cycle
Hayward Holdings Inc
HAYW
215.59
Middleby Corp
MIDD
138.06
Standex International Corporation
SXI
75.57
Tennant Company
TNC
94.33