Hillenbrand Inc (HI)
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 | 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 | 48.60 | 57.94 | 57.56 |
| Days of sales outstanding (DSO) | days | 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 | 80.48 | 72.63 | 74.05 |
| Number of days of payables | days | 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 | 70.42 | 69.67 | 65.33 |
| Cash conversion cycle | days | 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 | 58.66 | 60.89 | 66.28 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 113.78 + 79.32 – 79.05
= 114.04
The cash conversion cycle is an important metric that reflects how efficiently a company manages its working capital. The cash conversion cycle for Hillenbrand Inc has shown some fluctuations over the past eight quarters.
In Q1 2024, the cash conversion cycle increased slightly to 113.93 days, compared to the previous quarter where it was 112.53 days in Q4 2023. This indicates that the company took slightly longer to convert its investments in inventory and receivables into cash during this period.
Looking further back, in Q3 and Q2 of 2023, the cash conversion cycle was 109.87 days and 115.77 days respectively. This suggests that the company was able to manage its working capital more efficiently in Q3 compared to Q2.
When we compare the most recent quarters to the same quarters a year ago, there has been a noticeable increase in the cash conversion cycle. For example, in Q1 2023, the cash conversion cycle was 112.52 days, lower than Q1 2024, pointing to potential challenges in working capital management that have emerged over the year.
Overall, Hillenbrand Inc's cash conversion cycle has shown fluctuations, with some quarters indicating more efficient management of working capital than others. It would be important for the company to analyze the underlying factors driving these changes and work towards optimizing its cash conversion cycle to improve cash flow and overall financial performance.
Peer comparison
Dec 31, 2023