Hawkins Inc (HWKN)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 40.70 | 40.63 | 41.25 | 41.30 | 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 |
| Days of sales outstanding (DSO) | days | 49.37 | 42.75 | 45.01 | 49.93 | 45.46 | 44.63 | 48.72 | 53.74 | 50.45 | 49.25 | 53.42 | 60.31 | 57.88 | 52.53 | 49.03 | 52.28 | 55.41 | 50.12 | 50.00 | 47.29 |
| Number of days of payables | days | 29.83 | 19.86 | 25.77 | 24.31 | 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 |
| Cash conversion cycle | days | 60.24 | 63.53 | 60.49 | 66.92 | 54.62 | 57.42 | 52.25 | 63.86 | 67.08 | 73.61 | 79.35 | 86.19 | 74.32 | 73.07 | 67.71 | 73.96 | 75.89 | 77.19 | 75.53 | 74.54 |
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 of Hawkins Inc has fluctuated over the period under review. It indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From June 30, 2020, to June 30, 2021, the cash conversion cycle decreased steadily from 74.54 days to 73.96 days, suggesting an improvement in the efficiency of the company's working capital management. However, from June 30, 2021, to June 30, 2022, there was a significant increase in the cash conversion cycle to 86.19 days, which may imply challenges in managing inventory, collecting receivables, or negotiating payables.
Subsequently, there was a noticeable decrease in the cash conversion cycle from June 30, 2022, to September 30, 2023, indicating a more efficient use of working capital. The cycle reached its lowest point on September 30, 2023, at 52.25 days, reflecting a positive trend in cash management.
However, from September 30, 2023, to March 31, 2025, the cash conversion cycle increased gradually, suggesting potential issues in managing working capital. This increase could be due to a slowdown in inventory turnover, delayed collections from customers, or extended payment terms with suppliers.
Overall, the company should focus on maintaining an optimal cash conversion cycle by effectively managing inventory levels, improving accounts receivable collection processes, and negotiating favorable payment terms with suppliers to enhance its liquidity position and operational efficiency.
Peer comparison
Mar 31, 2025