The Marzetti Company (MZTI)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 42.52 | 43.93 | 40.28 | 39.99 | 41.18 |
| Days of sales outstanding (DSO) | days | 18.32 | 18.63 | 23.02 | 29.50 | 24.36 |
| Number of days of payables | days | 29.62 | 30.13 | 28.45 | 31.78 | 37.28 |
| Cash conversion cycle | days | 31.21 | 32.44 | 34.86 | 37.72 | 28.25 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 42.52 + 18.32 – 29.62
= 31.21
The cash conversion cycle (CCC) for The Marzetti Company over the period from June 30, 2021, to June 30, 2025, has exhibited fluctuations but overall demonstrates a trend toward stabilization. In 2021, the CCC was 28.25 days, indicating the company was able to convert its investments in inventory and receivables into cash relatively quickly. By 2022, the cycle extended to 37.72 days, reflecting an increase in the time required to convert inventory and receivables into cash, possibly due to operational or market factors.
In 2023, the CCC decreased slightly to 34.86 days, suggesting some improvement in either inventory management, receivables collection, or both. The following year, 2024, saw a further reduction to 32.44 days, approaching the earlier levels observed in 2021, which may indicate efforts to optimize cash flow efficiency. By 2025, the cycle continued to decline marginally, reaching 31.21 days, thus maintaining a relatively stable and efficient cash conversion period.
Overall, the CCC has shown a pattern of initial increase followed by gradual improvement, trending toward a cycle length that suggests improved working capital management. The fluctuations likely reflect responses to operational adjustments, market conditions, or strategic initiatives aimed at enhancing liquidity and reducing the time between cash outflows for inventory and receivables and cash inflows from sales.
Peer comparison
Jun 30, 2025