Innovex International, Inc (INVX)

Cash conversion cycle

		Jun 30, 2025	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
Days of inventory on hand (DOH)	days	170.45	191.91	232.01	308.09	220.48	237.52	230.23	180.52	227.91	208.50	200.39	196.85	198.01	206.64	219.47	289.73	295.85	278.90	287.63	284.09
Days of sales outstanding (DSO)	days	93.01	128.68	153.54	179.77	221.02	227.76	244.44	121.87	274.30	278.83	237.84	234.21	233.59	220.14	230.10	238.46	252.74	253.59	256.54	225.74
Number of days of payables	days	39.98	54.45	55.79	86.58	65.51	71.44	77.73	51.16	75.38	64.43	59.04	65.11	65.53	53.53	53.06	59.53	69.60	55.08	50.65	66.40
Cash conversion cycle	days	223.48	266.15	329.77	401.28	375.99	393.85	396.95	251.24	426.83	422.89	379.19	365.95	366.06	373.26	396.50	468.66	478.99	477.41	493.52	443.43

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 170.45 + 93.01 – 39.98
= 223.48

The cash conversion cycle (CCC) of Innovex International, Inc. has exhibited notable fluctuations over the specified periods. Starting at approximately 443.43 days as of September 30, 2020, the cycle initially increased, peaking at 493.52 days by December 31, 2020. It then experienced a slight decline, remaining relatively stable through March and June of 2021, with values around 477.41 and 478.99 days respectively, before decreasing further to 468.66 days in September 2021.

A more pronounced reduction occurred between September 2021 and March 2022, where the CCC decreased from 468.66 days to 373.26 days. This trend continued through the subsequent quarters, reaching a low of approximately 366.06 days as of June 30, 2022, and slightly decreasing further to 365.95 days by September 2022. The cycle then experienced an uptick, rising again to 379.19 days by December 2022, and fluctuated thereafter, reaching 422.89 days in March 2023 and 426.83 days in June 2023.

A significant decline is observed in the September 2023 figure, with the CCC dropping sharply to approximately 251.24 days, which indicates an improvement in cash flow efficiency during this period. However, this was followed by an increase, with the cycle rising back to approximately 396.95 days in December 2023. The first quarter of 2024 saw a slight decrease to 393.85 days, followed by a further decline to 375.99 days in June 2024. By September 2024, the CCC slightly increased to 401.28 days before decreasing again to 329.77 days in December 2024.

Looking forward, the trend suggests continued improvement, with the CCC decreasing to 266.15 days in March 2025 and further down to 223.48 days by June 2025. This steady downward trend indicates a progressive improvement in the company's operational efficiency in managing its working capital cycle over the analyzed period. Such reductions in the cash conversion cycle typically reflect faster inventory turnover, quicker receivables collection, and efficient management of payables, contributing to an enhanced liquidity position and operational agility.