H&R Block Inc (HRB)
Cash conversion cycle
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | Apr 30, 2021 | Mar 31, 2021 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 3.27 | — | — | 5.80 | 5.38 | 4.70 | 5.30 | — | — | 4.43 | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 6.17 | 34.65 | 32.38 | 7.05 | 6.98 | 35.36 | 49.37 | 10.76 | 10.08 | 29.46 | 39.61 | 22.76 | 27.54 | 82.38 | 81.84 | 43.01 | 56.24 | 13.08 | 57.69 | 66.99 |
| Number of days of payables | days | 25.20 | 43.20 | 24.78 | 29.47 | 28.56 | 45.88 | 27.20 | 28.46 | 30.34 | 43.98 | 26.21 | 34.64 | 33.45 | 64.20 | 25.42 | 23.93 | 28.61 | — | 39.25 | — |
| Cash conversion cycle | days | -19.03 | -8.55 | 7.60 | -22.42 | -18.30 | -10.52 | 22.17 | -11.90 | -14.88 | -9.82 | 18.70 | -11.88 | -5.91 | 22.61 | 56.41 | 19.07 | 27.63 | 13.08 | 18.44 | 66.99 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 6.17 – 25.20
= -19.03
The cash conversion cycle (CCC) of H&R Block Inc. has exhibited notable fluctuations over the analyzed period. Initially, on January 31, 2021, the CCC stood at approximately 67 days, indicating a relatively lengthy period for cash to cycle through operations. Subsequently, the period declined sharply, reaching approximately 18.4 days by March 31, 2021, and further decreasing to around 13.1 days by April 30, 2021. This trend suggests improved operational efficiency and faster cash realization in the early part of 2021.
Throughout the remainder of 2021, the CCC experienced variability, with a significant rise back towards 56.4 days by December 31, 2021, indicating a lengthening in the cash conversion process. In 2022, the cycle shortened considerably, transitioning to slightly negative territory by June 30 (-5.91 days) and September 30 (-11.88 days). The negative values during this period imply that the company was collecting cash from customers faster than it was paying suppliers, reflecting highly efficient cash management or aggressive collection practices.
The trend of negative CCC values persisted into 2023 and the first half of 2024, with further declines reaching as low as -22.42 days on September 30, 2024. This ongoing negative cycle indicates a consistent pattern where H&R Block benefits from rapid cash inflows relative to outflows, potentially due to the company's billing cycle, cash collection strategy, or contractual arrangements. However, by the end of 2024, the CCC increased to around 7.6 days, turning positive again, implying a shift toward a slightly longer cash conversion cycle.
From March 2025 onward, the CCC remains negative but with a further deepening to approximately -19 days by June 2025. This sustained negative cycle underscores a continued efficiency in cash collection relative to payments, although the variability indicates that the company may be experiencing intermittent operational or external factors affecting the cycle length.
Overall, the data suggests that H&R Block Inc. has shifted from a period of longer cash conversion cycles to periods of highly efficient cash management, characterized by negative CCCs. These dynamics reflect improvements in operational efficiency, cash flow management, and possibly strategic adjustments in accounts payable and receivable practices over the observed timeframe.
Peer comparison
Jun 30, 2025