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