MasterBrand Inc. (MBC)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.33 | 60.28 | 55.59 | 50.66 |
| Days of sales outstanding (DSO) | days | 25.82 | 29.11 | 29.20 | 30.48 |
| Number of days of payables | days | 36.17 | 35.29 | 35.74 | 33.43 |
| Cash conversion cycle | days | 44.97 | 54.09 | 49.05 | 47.70 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.33 + 25.82 – 36.17
= 44.97
The cash conversion cycle of MasterBrand Inc. for the period from March 31, 2024, to December 31, 2024, has shown some fluctuation. The company's cash conversion cycle was 47.70 days at the end of March 2024, indicating that it took the company approximately 47.70 days to convert its investments in inventory into cash receipts from customers.
Subsequently, the cash conversion cycle increased to 49.05 days by the end of June 2024, suggesting a slight delay in the conversion of inventory to cash. This was followed by a significant increase to 54.09 days by September 30, 2024, indicating a further slowdown in the company's collection of cash from sales compared to the previous quarter.
However, the cash conversion cycle improved to 44.97 days by the end of December 31, 2024, showing a positive trend compared to the previous quarter. This decrease suggests that the company was able to manage its inventory, receivables, and payables more efficiently, resulting in a shorter cash conversion cycle.
Overall, while there were fluctuations in the cash conversion cycle of MasterBrand Inc. throughout the period analyzed, the company ended the year with a lower cash conversion cycle compared to the previous quarter, indicating improvements in its working capital management efficiency.
Peer comparison
Dec 31, 2024