Hawkins Inc (HWKN)
Cash conversion cycle
| 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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 37.53 | 33.92 | 33.02 | 36.50 | 42.08 | 48.52 | 56.19 | 55.90 | 55.20 | 48.60 | 48.06 | 49.28 | 49.27 | 52.25 | 52.92 | 53.44 | 45.23 | 47.53 | 49.31 | 46.82 |
| Days of sales outstanding (DSO) | days | 45.46 | 44.63 | 48.72 | 53.74 | 50.45 | — | — | — | 57.88 | 52.53 | 49.03 | 52.28 | 55.51 | 50.12 | 50.00 | 47.29 | 45.53 | 38.24 | 43.51 | 45.49 |
| Number of days of payables | days | 28.37 | 21.13 | 29.50 | 26.38 | 25.46 | 24.15 | 30.26 | 30.02 | 38.76 | 28.06 | 29.38 | 27.60 | 28.79 | 25.18 | 27.39 | 26.19 | 28.36 | 22.09 | 24.02 | 25.50 |
| Cash conversion cycle | days | 54.62 | 57.42 | 52.25 | 63.86 | 67.08 | 24.36 | 25.93 | 25.88 | 74.32 | 73.07 | 67.71 | 73.96 | 76.00 | 77.19 | 75.53 | 74.54 | 62.41 | 63.67 | 68.80 | 66.80 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.53 + 45.46 – 28.37
= 54.62
Hawkins Inc's cash conversion cycle has shown fluctuations over the past few quarters. The cash conversion cycle indicates the average number of days it takes for a company to convert its investments in inventory and accounts receivable into cash inflows from sales.
The trend in Hawkins Inc's cash conversion cycle reveals that there have been periods of both efficiency and inefficiency in managing its working capital. For example, in the most recent quarter ending March 31, 2024, the company's cash conversion cycle was 54.62 days, showing an improvement compared to the previous quarter.
However, the company experienced a significant increase in its cash conversion cycle in the quarter ending June 30, 2023, with a cycle of 63.86 days. This indicates a potential inefficiency in managing inventory and accounts receivable during that period.
Overall, Hawkins Inc should aim to keep its cash conversion cycle at an optimal level by effectively managing its inventory levels and accounts receivable collection processes. This will help the company free up cash and improve its liquidity position, ultimately leading to better financial performance and sustainability.
Peer comparison
Mar 31, 2024