Myers Industries Inc (MYE)

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	44.32	45.61	44.87	45.61	41.42	48.37	49.93	47.99	47.45	49.72	48.83	48.31	50.65	38.86	40.15	38.28	33.14	31.45	29.67	29.59
Days of sales outstanding (DSO)	days	51.13	51.34	49.30	53.60	54.24	53.00	56.07	59.47	48.18	60.52	56.90	61.39	59.86	56.30	53.87	47.74	44.07	44.24	48.80	47.46
Number of days of payables	days	38.57	38.28	37.33	41.74	32.63	43.44	47.82	48.77	41.43	43.21	50.14	48.37	46.99	38.40	36.35	38.53	35.10	38.73	37.02	37.48
Cash conversion cycle	days	56.89	58.67	56.83	57.47	63.04	57.94	58.17	58.69	54.20	67.03	55.59	61.33	63.52	56.76	57.67	47.49	42.12	36.96	41.45	39.57

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.32 + 51.13 – 38.57
= 56.89

Myers Industries Inc.'s cash conversion cycle has shown some fluctuations over the past eight quarters. The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales, ranged between 58.59 days and 65.99 days during this period. This metric indicates that the company takes, on average, around 58 to 66 days to convert its resources into cash.

In the most recent quarter, Q4 2023, the cash conversion cycle increased to 65.52 days from 61.26 days in Q3 2023. This suggests that the company may be taking slightly longer to convert its investments into cash compared to the previous quarter. However, it's important to consider that this cycle is influenced by various factors such as inventory management, accounts receivable collection, and accounts payable management.

Looking at the trend over the past two years, there seems to be some variability in the cash conversion cycle, with periodic fluctuations in the range of a few days. This could be attributed to changes in sales patterns, inventory turnover, or payment terms with suppliers and customers.

Overall, the cash conversion cycle analysis provides insight into the efficiency of Myers Industries Inc.'s working capital management. Monitoring this metric over time can help the company assess its liquidity, operational efficiency, and potential areas for improvement to optimize cash flow and enhance financial performance.