Callaway Golf Company (MODG)
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 | 259.75 | 240.86 | 277.12 | 314.97 | 333.25 | 256.50 | 218.82 | 207.96 | 221.95 | 127.87 | 95.95 | 81.25 | 74.04 | 70.77 | 84.06 | 95.93 | 103.14 | 83.72 | 97.29 | 109.51 |
| Days of sales outstanding (DSO) | days | 18.44 | 27.74 | 36.58 | 42.68 | 17.36 | 27.20 | 38.59 | 45.17 | 14.80 | 33.97 | 49.93 | 67.75 | 32.49 | 60.09 | 58.70 | 64.61 | 33.10 | 57.22 | 73.74 | 80.57 |
| Number of days of payables | days | 42.74 | 33.72 | 42.73 | 77.30 | 55.27 | 55.19 | 62.78 | 63.06 | 57.70 | 42.03 | 31.83 | 33.50 | 13.92 | — | — | — | 15.32 | — | — | — |
| Cash conversion cycle | days | 235.45 | 234.88 | 270.97 | 280.35 | 295.33 | 228.52 | 194.62 | 190.07 | 179.05 | 119.82 | 114.05 | 115.50 | 92.61 | 130.86 | 142.76 | 160.54 | 120.92 | 140.94 | 171.03 | 190.08 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 259.75 + 18.44 – 42.74
= 235.45
The cash conversion cycle of Topgolf Callaway Brands Corp has exhibited fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 175.50 days, showing a slight improvement compared to the previous quarter. Despite this improvement, the cycle remains elevated compared to historical levels.
Looking back over the past two years, the cash conversion cycle has generally trended upwards, with Q2 and Q1 2023 recording the highest values of 198.71 days and 201.06 days, respectively. This indicates that the company is taking longer to convert its investments in inventory and other resources into cash inflows from sales.
In contrast, Q2 and Q1 2022 had the lowest cash conversion cycles of 145.15 days and 143.21 days, suggesting a more effective management of working capital during those periods.
Overall, the analysis of Topgolf Callaway Brands Corp's cash conversion cycle highlights the importance of closely monitoring and managing working capital efficiency to optimize the company's liquidity and financial performance.
Peer comparison
Dec 31, 2023