Mueller Water Products (MWA)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 126.71 | 130.79 | 128.69 | 128.98 | 134.72 | 134.51 | 121.33 | 122.86 | 125.30 | 124.58 | 116.35 | 108.95 | 102.42 | 98.36 | 89.59 | 90.36 | 98.87 | 93.19 | 93.27 | 102.41 |
| Days of sales outstanding (DSO) | days | 58.89 | 40.56 | 59.83 | 62.96 | 69.03 | 51.84 | 62.12 | 59.91 | 63.78 | 57.13 | 68.18 | 70.86 | 72.09 | 60.97 | 69.71 | 70.76 | 67.21 | 62.53 | 68.45 | 63.38 |
| Number of days of payables | days | 47.89 | 40.70 | 46.88 | 37.62 | 42.39 | 47.06 | 41.91 | 39.68 | 40.38 | 41.06 | 50.76 | 42.21 | 48.26 | 39.35 | 44.62 | 44.23 | 41.17 | 32.44 | 38.63 | 33.51 |
| Cash conversion cycle | days | 137.71 | 130.64 | 141.64 | 154.32 | 161.35 | 139.30 | 141.53 | 143.08 | 148.70 | 140.64 | 133.77 | 137.59 | 126.25 | 119.97 | 114.68 | 116.88 | 124.91 | 123.27 | 123.09 | 132.28 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 126.71 + 58.89 – 47.89
= 137.71
The analysis of Mueller Water Products’ cash conversion cycle (CCC) over the specified period reveals a general trend characterized by fluctuations within a broad range. At the beginning of the analyzed timeline, on June 30, 2020, the CCC was approximately 132.28 days. This figure exhibited a declining trend, reaching a low of 114.68 days on September 30, 2021. This reduction suggests improved operational efficiency during this period, possibly due to faster receivables collection, shorter inventory turnover, or extended payables periods.
Subsequently, from late 2021 through mid-2022, the CCC experienced an upward movement, peaking at 140.64 days on December 31, 2022. This increase indicates a potential slowdown in the cash conversion efficiency, which could be attributed to longer inventory holding periods, delayed receivables, or more constrained payables. The upward trend continued into 2023, with the CCC reaching approximately 161.35 days on March 31, 2024, highlighting a significant elongation of the cycle. This elongation may suggest increased working capital requirements or challenges in receivables or inventory management.
In the most recent quarters, there has been some stabilization and slight improvement. As of December 31, 2024, the CCC decreased to approximately 130.64 days, and by March 31, 2025, it slightly increased again to 137.71 days. These movements could reflect tactical adjustments in supply chain and credit policies aimed at optimizing liquidity.
Overall, the period shows a cyclical pattern of improvement followed by deterioration and partial recovery in the cash conversion cycle, signaling variability in operating efficiency and cash flow management strategies. The long-term trend indicates periods of extended cycle duration reaching over 160 days, which may influence the company's liquidity position and working capital management practices.
Peer comparison
Mar 31, 2025