Metallus Inc (MTUS)

Cash conversion cycle

		Mar 31, 2024	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
Days of inventory on hand (DOH)	days	69.14	65.90	75.36	78.25	70.12	54.84	57.51	74.96	69.97	66.33	72.96	76.55	82.65	72.35	64.06	71.76	72.47	79.03	73.27	73.31
Days of sales outstanding (DSO)	days	32.44	31.16	40.23	40.83	37.91	23.75	26.59	41.65	36.87	28.76	41.26	43.77	42.01	28.13	35.41	25.67	31.88	23.64	28.48	35.36
Number of days of payables	days	42.33	38.53	43.82	48.42	49.66	32.26	34.63	53.69	51.24	44.63	44.85	47.02	55.61	36.30	27.12	16.72	28.93	19.43	20.72	26.53
Cash conversion cycle	days	59.25	58.54	71.77	70.67	58.37	46.33	49.47	62.93	55.60	50.46	69.37	73.31	69.05	64.18	72.34	80.70	75.42	83.24	81.04	82.14

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.14 + 32.44 – 42.33
= 59.25

The cash conversion cycle of Metallus Inc fluctuated over the past few quarters, indicating variations in the efficiency of its working capital management. In the recent quarter, ending March 31, 2024, the company's cash conversion cycle stood at 59.25 days, a slight increase from the previous quarter. This indicates that it took approximately 59.25 days for Metallus Inc to convert its investments in inventory into cash receipts from customers.

Looking back at the trend, the company experienced a significant increase in its cash conversion cycle in the third quarter of 2023, reaching 71.77 days, which might suggest potential challenges in managing inventory levels and collecting receivables efficiently during that period. However, the company managed to reduce the cycle in the following quarters, showing some improvement in working capital management.

Overall, fluctuations in the cash conversion cycle of Metallus Inc over the analyzed periods highlight the importance of closely monitoring working capital efficiency. The company should aim to streamline its inventory management and accounts receivable processes to shorten the cycle, which can potentially enhance cash flow and overall financial performance.