National Presto Industries Inc (NPK)

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 254.16 225.25 216.66 203.61 208.37 258.99 209.28 197.63 180.21 191.06 183.36 183.39 184.73 189.52 198.73 202.50 198.30 214.31 174.44 150.93
Days of sales outstanding (DSO) days 53.91 1.65 2.42 83.13 57.15
Number of days of payables days 51.03 54.62 49.62 47.14 39.64 45.40 37.26 38.69 41.04 53.05 33.79 35.98 45.64 40.23 48.59 40.83 33.40 44.40 43.14 39.94
Cash conversion cycle days 257.05 172.27 169.47 156.47 251.86 213.59 172.02 158.94 196.32 138.00 149.57 147.41 139.09 149.29 150.15 161.67 164.90 169.92 131.30 110.98

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 254.16 + 53.91 – 51.03
= 257.05

The cash conversion cycle of National Presto Industries Inc has been fluctuating over the past few quarters, indicating varying efficiencies in managing its cash conversion process.

The company's cash conversion cycle increased significantly from Mar 31, 2019, to Dec 31, 2020, reaching its peak at 251.86 days before decreasing gradually until Jun 30, 2021. However, by Dec 31, 2021, the cycle increased again before experiencing some fluctuations in the subsequent quarters.

Overall, a longer cash conversion cycle suggests that the company takes more time to convert its investments in inventory into cash received from the sale of products, which may impact the company's liquidity and working capital management. It is important for National Presto Industries Inc to closely monitor and optimize its cash conversion cycle to ensure efficient use of its resources and maintain healthy financial performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
National Presto Industries Inc
NPK
257.05
Axon Enterprise Inc.
AXON
157.93
Sturm Ruger & Company Inc
RGR
101.33
Vista Outdoor Inc
VSTO
107.66