Hawkins Inc (HWKN)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 37.53 | 42.08 | 55.20 | 49.27 | 45.23 |
| Days of sales outstanding (DSO) | days | 45.46 | 50.45 | 57.88 | 55.51 | 45.53 |
| Number of days of payables | days | 28.37 | 25.46 | 38.76 | 28.79 | 28.36 |
| Cash conversion cycle | days | 54.62 | 67.08 | 74.32 | 76.00 | 62.41 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.53 + 45.46 – 28.37
= 54.62
The cash conversion cycle of Hawkins Inc has shown fluctuations over the past five years. In the most recent fiscal year ending March 31, 2024, the company's cash conversion cycle decreased to 54.62 days compared to the previous year's 67.08 days. This indicates an improvement in the efficiency of converting its investments in inventory into cash receipts from customers.
Looking back, there was a notable decrease in the cash conversion cycle from 2020 to 2021, followed by a gradual increase in the following years. This suggests that the company may have implemented strategies to manage its working capital more effectively initially but faced challenges in maintaining those improvements consistently.
Overall, monitoring and managing the cash conversion cycle is crucial for Hawkins Inc to optimize its operational efficiency and liquidity position. By continuing to focus on inventory management, accounts receivable collection, and payment of accounts payable, the company can further streamline its cash conversion cycle and enhance its financial performance in the long run.
Peer comparison
Mar 31, 2024