H&R Block Inc (HRB)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 3.71 | — | — | — |
| Days of sales outstanding (DSO) | days | 7.14 | 6.44 | 6.32 | 21.83 | 19.11 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 7.14 | 10.15 | 6.32 | 21.83 | 19.11 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 7.14 – —
= 7.14
The cash conversion cycle of H&R Block Inc has fluctuated over the past five years. In June 2024, the company's cash conversion cycle improved to 7.14 days, down from 10.15 days in June 2023. This indicates that the company was able to efficiently convert its investments in inventory and accounts receivable into cash during the latest period.
Compared to June 2022 when the cash conversion cycle was 6.32 days, there was a slight increase in the number of days it takes for H&R Block Inc to convert its working capital into cash. However, the company still managed to maintain a relatively strong cash conversion cycle in June 2024.
In contrast, in April 2021, the cash conversion cycle was notably longer at 21.83 days, showing a significant improvement compared to April 2020, when it was 19.11 days. This suggests that during the financial year ending 2021, H&R Block Inc took longer to convert its investments into cash compared to the previous year.
Overall, the recent data indicates that H&R Block Inc has been successful in managing its working capital efficiently, leading to a shorter cash conversion cycle in June 2024. This trend demonstrates the company's ability to effectively manage its cash flows and optimize its operations to enhance liquidity.
Peer comparison
Jun 30, 2024