H&R Block Inc (HRB)
Cash conversion cycle
| 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 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 4.00 | 3.71 | 3.22 | 3.60 | — | — | 1.80 | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 7.14 | 36.15 | 42.49 | 6.47 | 6.44 | 26.63 | 35.47 | 6.61 | 6.32 | 20.53 | 37.91 | 7.13 | 21.83 | 73.85 | 8.70 | 11.81 | 18.80 | 98.14 | 9.02 | 9.22 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 7.14 | 36.15 | 42.49 | 10.47 | 10.15 | 29.85 | 39.07 | 6.61 | 6.32 | 22.34 | 37.91 | 7.13 | 21.83 | 73.85 | 8.70 | 11.81 | 18.80 | 98.14 | 9.02 | 9.22 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 7.14 – —
= 7.14
The cash conversion cycle (CCC) of H&R Block Inc fluctuated over the past several quarters. The CCC represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter CCC indicates that the company is efficiently managing its working capital.
H&R Block's CCC ranged from 6.32 days to 73.85 days over the periods analyzed. The shortest CCC of 6.32 days occurred on Sep 30, 2022, indicating efficient working capital management. In contrast, the longest CCC of 73.85 days was reported on Jan 31, 2021, reflecting a potential delay in converting investments into cash.
The average CCC over these periods was approximately 25.85 days. A decreasing trend was observed in the CCC from the end of 2023 to mid-2024, suggesting improved efficiency in managing working capital during these quarters.
Overall, H&R Block should aim to continue monitoring and managing its cash conversion cycle effectively to optimize its working capital and cash flow operations.
Peer comparison
Jun 30, 2024