Hillenbrand Inc (HI)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 90.16 | 115.19 | 114.24 | 99.55 | 82.57 |
| Days of sales outstanding (DSO) | days | 74.86 | 85.10 | 82.86 | 72.53 | 60.56 |
| Number of days of payables | days | 76.35 | 87.76 | 87.28 | 87.39 | 58.19 |
| Cash conversion cycle | days | 88.66 | 112.53 | 109.82 | 84.70 | 84.94 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 90.16 + 74.86 – 76.35
= 88.66
The cash conversion cycle of Hillenbrand Inc has fluctuated over the past five years. In the most recent fiscal year ending on September 30, 2024, the company's cash conversion cycle decreased to 88.66 days compared to 112.53 days in 2023 and 109.82 days in 2022. This indicates that Hillenbrand Inc was able to convert its investments in inventory and accounts receivable into cash more efficiently in 2024.
However, it is worth noting that the cash conversion cycle in 2024 was higher than the levels observed in 2021 and 2020, where it stood at 84.70 days and 84.94 days, respectively. This suggests that the company took longer to convert its resources into cash during the most recent fiscal year.
Overall, Hillenbrand Inc's cash conversion cycle has shown some variability in recent years, emphasizing the importance of monitoring working capital management practices to ensure efficient cash flow operations.
Peer comparison
Sep 30, 2024