National Presto Industries Inc (NPK)
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 | 290.63 | 326.88 | 335.66 | 297.52 | 271.11 | 253.81 | 225.25 | 216.66 | 209.71 | 208.37 | 258.99 | 209.28 | 197.63 | 180.21 | 191.06 | 183.36 | 183.39 | 184.73 | 189.52 | 196.38 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 290.63 | 326.88 | 335.66 | 297.52 | 271.11 | 253.81 | 225.25 | 216.66 | 209.71 | 208.37 | 258.99 | 209.28 | 197.63 | 180.21 | 191.06 | 183.36 | 183.39 | 184.73 | 189.52 | 196.38 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 290.63 + — – —
= 290.63
The cash conversion cycle of National Presto Industries Inc has shown some fluctuations over the reported periods. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From June 30, 2020, to December 31, 2021, the company managed to decrease its cash conversion cycle, indicating an improvement in efficiency in managing its working capital. However, from March 31, 2022, the cycle started increasing, reaching its peak at September 30, 2024. This increase could imply potential issues with managing inventory, collecting receivables, or paying its payables in a timely manner.
The sharp increase from September 30, 2024, to March 31, 2025, could signify challenges in managing working capital efficiently, which may lead to increased borrowing or liquidity constraints.
Overall, a higher cash conversion cycle means the company takes longer to convert its investments into cash, which could potentially impact cash flows and liquidity in the short term. National Presto Industries Inc may need to evaluate its operational processes and working capital management to improve its cash conversion cycle and ensure effective utilization of resources.
Peer comparison
Mar 31, 2025