Matson Inc (MATX)
Cash conversion cycle
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 33.09 | 35.99 | 30.78 | 26.72 | 22.65 | 25.03 | 29.27 | 31.09 | 32.14 | 35.96 | 39.35 | 37.30 | 39.26 | 38.95 | 37.01 | 37.01 | 34.46 | 37.04 | 34.94 | 35.74 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 367.66 | 343.26 | 361.89 |
| Cash conversion cycle | days | 33.09 | 35.99 | 30.78 | 26.72 | 22.65 | 25.03 | 29.27 | 31.09 | 32.14 | 35.96 | 39.35 | 37.30 | 39.26 | 38.95 | 37.01 | 37.01 | 34.46 | -330.62 | -308.33 | -326.15 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 33.09 – —
= 33.09
The cash conversion cycle of Matson Inc has fluctuated over the past eight quarters, indicating varying efficiency in managing its working capital. The cash conversion cycle represents the time taken to convert investments in inventory and receivables into cash inflows from sales.
In Q1 2023, Matson Inc took approximately 26.61 days on average to convert its investments in inventory and accounts receivable into cash. This was the most efficient performance in recent quarters, reflecting a quicker turnover of working capital.
The cash conversion cycle increased in Q2 2023 to 30.64 days before dropping slightly to 35.85 days in Q3 2023. These increases suggest potential delays in converting inventory and receivables into cash or possibly a slower collection of receivables.
In Q4 2023, the cash conversion cycle further increased to 47.72 days, indicating a notable slowdown in the conversion process compared to the previous quarter. This could signify challenges in managing inventory levels, collection of receivables, or payment of payables within the period.
Comparing this performance to previous years, the company's cash conversion cycle has generally shown fluctuation but remained within a manageable range. Monitoring and improving the cash conversion cycle can help to optimize working capital efficiency and liquidity management for Matson Inc.
Peer comparison
Dec 31, 2023