Hawkins Inc (HWKN)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 40.70 | 37.53 | 42.08 | 55.20 | 49.27 |
| Days of sales outstanding (DSO) | days | 49.37 | 45.46 | 50.45 | 57.88 | 55.41 |
| Number of days of payables | days | 29.83 | 28.37 | 25.46 | 38.76 | 28.79 |
| Cash conversion cycle | days | 60.24 | 54.62 | 67.08 | 74.32 | 75.89 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 40.70 + 49.37 – 29.83
= 60.24
The cash conversion cycle for Hawkins Inc has shown a declining trend over the past five years. As of March 31, 2021, the company's cash conversion cycle was 75.89 days, which decreased to 74.32 days by March 31, 2022. Subsequently, the cycle continued to decrease and reached 67.08 days by March 31, 2023. There was a significant improvement in efficiency by March 31, 2024, with the cash conversion cycle reducing to 54.62 days. However, by March 31, 2025, the cycle slightly increased to 60.24 days, indicating a slight decrease in efficiency in converting resources into cash during that year.
Overall, the decreasing trend in the cash conversion cycle suggests that Hawkins Inc has been able to manage its operating cycle more effectively over the years, with a few fluctuations observed in the most recent period. This improvement signifies the company's ability to efficiently convert its investments in inventory and accounts receivable into cash, thereby potentially enhancing its liquidity and financial performance.
Peer comparison
Mar 31, 2025