Monro Muffler Brake Inc (MNRO)
Cash conversion cycle
| Mar 31, 2024 | Dec 23, 2023 | Sep 23, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 124.76 | 95.30 | 87.04 | 124.44 | 125.26 | 116.07 | 74.81 | 54.10 | 71.10 | 92.06 | 131.81 | 144.49 | 161.62 | 117.45 | 85.26 | 86.67 | 87.73 | 84.60 | 82.01 | 85.04 |
| Days of sales outstanding (DSO) | days | — | 0.23 | 0.01 | — | — | — | — | — | — | — | 0.64 | 0.94 | 3.60 | 2.29 | 2.18 | 2.32 | 2.39 | 0.49 | 0.54 | — |
| Number of days of payables | days | 204.00 | 170.76 | 166.36 | 242.96 | 222.41 | 187.52 | 102.01 | 65.57 | 56.44 | 63.97 | 96.73 | 104.70 | 111.92 | 93.78 | 64.86 | 54.43 | 46.57 | 54.54 | 51.90 | 51.34 |
| Cash conversion cycle | days | -79.23 | -75.22 | -79.32 | -118.53 | -97.16 | -71.45 | -27.20 | -11.47 | 14.66 | 28.09 | 35.72 | 40.73 | 53.31 | 25.97 | 22.57 | 34.56 | 43.55 | 30.55 | 30.65 | 33.71 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 124.76 + — – 204.00
= -79.23
The cash conversion cycle of Monro Muffler Brake Inc fluctuated over the past few quarters. It measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
From September 30, 2019, to September 23, 2023, the company's cash conversion cycle has ranged from a high of 43.55 days to a low of -118.53 days. A negative cash conversion cycle indicates that the company is able to collect cash from its sales before paying its suppliers, which can be advantageous for cash flow management.
The most recent data for March 31, 2024, shows a cash conversion cycle of -79.23 days, suggesting the company continues to efficiently manage its working capital. However, compared to the previous quarter's cycle of -75.22 days, there was a slight deterioration in efficiency in converting its resources into cash.
It is essential for the company to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management and liquidity. Adjustments in inventory management, accounts receivable, and accounts payable processes may be necessary to improve the efficiency of the cash conversion cycle in the future.
Peer comparison
Mar 31, 2024