Haverty Furniture Companies Inc (HVT)
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 | 43.15 | 43.95 | 46.88 | 45.01 | 46.48 | 54.84 | 54.35 | 48.81 | 45.72 | 49.83 | 50.10 | 51.06 | 46.45 | 66.62 | 75.89 | 71.36 | 67.00 | 47.69 | 52.32 | 52.01 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.77 | 0.58 | 0.63 | 0.69 | 0.72 | 0.72 | 0.78 |
| Number of days of payables | days | 8.62 | 9.07 | 8.29 | 6.16 | 9.17 | 9.96 | 14.23 | 13.20 | 12.75 | 14.52 | 14.84 | 12.34 | 16.24 | 19.86 | 16.51 | 10.86 | 17.79 | 13.12 | 10.02 | 10.53 |
| Cash conversion cycle | days | 34.52 | 34.88 | 38.59 | 38.85 | 37.31 | 44.88 | 40.12 | 35.61 | 32.97 | 35.31 | 35.25 | 38.72 | 30.21 | 47.53 | 59.97 | 61.14 | 49.90 | 35.29 | 43.02 | 42.27 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 43.15 + — – 8.62
= 34.52
The cash conversion cycle of Haverty Furniture Cos., Inc. has shown some fluctuations over the past eight quarters. The cycle represents the time it takes for the company to convert its investment in inventory into cash received from customers.
In Q4 2023, the cash conversion cycle was 80.93 days, indicating that it took the company approximately 80.93 days to convert inventory into cash. This was an improvement compared to the previous quarter, Q3 2023, where the cycle was 77.94 days.
Looking back further, Q2 2023 saw a slight increase in the cash conversion cycle to 83.71 days, followed by a decrease in Q1 2023 to 82.38 days.
Comparing these figures to the same quarters in the previous year, there has been noticeable variability in the cash conversion cycle. In Q4 2022, the cycle was 78.27 days, higher than the most recent quarter. Q3 2022 saw a significant increase to 93.61 days, indicating a longer time to convert inventory into cash.
The overall trend suggests some level of inconsistency in Haverty Furniture Cos., Inc.'s ability to efficiently manage its working capital and convert inventory into cash. Further analysis of the underlying factors contributing to these fluctuations would be necessary to provide a more in-depth understanding of the company's cash conversion cycle performance.
Peer comparison
Dec 31, 2023