Hillenbrand Inc (HI)
Cash conversion cycle
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 90.16 | 101.01 | 106.31 | 113.78 | 115.58 | 116.70 | 126.55 | 133.94 | 114.24 | 146.02 | 130.54 | 111.58 | 99.55 | 81.20 | 79.03 | 80.71 | 82.57 | 98.67 | 105.28 | 122.61 |
| Days of sales outstanding (DSO) | days | 74.86 | 79.91 | 81.48 | 79.32 | 85.10 | 81.93 | 91.46 | 90.59 | 82.86 | 99.39 | 89.38 | 77.05 | 72.53 | 54.39 | 59.48 | 64.35 | 60.56 | 73.25 | 81.57 | 102.26 |
| Number of days of payables | days | 76.35 | 78.25 | 81.69 | 79.05 | 88.06 | 82.60 | 88.84 | 89.95 | 87.28 | 126.57 | 116.21 | 98.37 | 87.39 | 65.07 | 60.31 | 56.97 | 58.19 | 61.60 | 74.09 | 96.79 |
| Cash conversion cycle | days | 88.66 | 102.66 | 106.11 | 114.04 | 112.62 | 116.04 | 129.16 | 134.58 | 109.82 | 118.83 | 103.70 | 90.26 | 84.70 | 70.52 | 78.20 | 88.10 | 84.94 | 110.32 | 112.76 | 128.08 |
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, a measure of how long it takes for the company to convert its investments in inventory and other resources into cash inflows from sales, has displayed fluctuations over the past few quarters.
In the most recent quarter, ending September 30, 2024, the cash conversion cycle stood at 88.66 days, showing an improvement from the previous quarter's figure of 102.66 days. This suggests that the company was able to manage its working capital more efficiently during this period, potentially by reducing the time taken to sell inventory or collect receivables.
Looking back further, the cash conversion cycle peaked at 134.58 days on December 31, 2022, indicating that the company faced challenges in converting its assets into cash during that particular quarter. Conversely, on March 31, 2021, the cycle was at its lowest at 70.52 days, reflecting a significantly quicker conversion of resources to cash during that period.
Overall, fluctuations in the cash conversion cycle can provide insights into how effectively Hillenbrand Inc is managing its working capital and operational efficiency. Analyzing trends in the cash conversion cycle can help identify areas for improvement and gauge the company's ability to efficiently generate cash flow from its operations.
Peer comparison
Sep 30, 2024