Maximus Inc (MMS)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 60.50 | 61.53 | 63.61 | 71.62 | 82.90 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 60.50 | 61.53 | 63.61 | 71.62 | 82.90 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 60.50 – —
= 60.50
The cash conversion cycle of Maximus Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's efficiency in managing its working capital. The cycle decreased from 82.90 days in 2020 to 60.50 days in 2024.
A shorter cash conversion cycle suggests that Maximus Inc is able to convert its investments in inventory into cash more quickly, indicating effective inventory management. Additionally, a shorter cycle also implies that the company is able to collect payments from its customers faster and delay payments to its suppliers, which can improve cash flow and overall liquidity position.
Overall, the decreasing trend in the cash conversion cycle of Maximus Inc is a positive indication of the company's improved working capital management and operational efficiency over the years.
Peer comparison
Sep 30, 2024