Enpro Industries (NPO)
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 | 48.14 | 45.06 | 46.37 | 48.15 | 44.17 | 46.66 | 51.73 | 51.66 | 45.07 | 47.74 | 47.64 | 45.14 | 44.97 | 56.34 | 69.22 | 67.36 | 69.72 | 74.40 | 82.99 | 81.40 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | 1.93 | 13.97 | 17.21 | 17.50 | 15.79 | — | — | — | 6.49 | 9.36 | 8.78 | 7.83 |
| Number of days of payables | days | 23.19 | 19.64 | 19.22 | 21.12 | 21.34 | 22.65 | 28.20 | 28.63 | 23.88 | 24.45 | 27.16 | 23.48 | 22.57 | 31.15 | 30.22 | 35.00 | 36.70 | 34.84 | 37.83 | 38.95 |
| Cash conversion cycle | days | 24.95 | 25.42 | 27.14 | 27.03 | 22.83 | 24.01 | 23.52 | 23.03 | 23.12 | 37.26 | 37.69 | 39.15 | 38.19 | 25.19 | 39.00 | 32.36 | 39.51 | 48.92 | 53.94 | 50.28 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 48.14 + — – 23.19
= 24.95
The cash conversion cycle is a measure of how efficiently a company manages its working capital by measuring the time it takes to convert its resources into cash. In the case of Enpro Inc, the cash conversion cycle has shown some fluctuation over the past eight quarters.
In Q4 2023, the cash conversion cycle was 82.86 days, indicating that it took the company approximately 83 days to convert its inventory and receivables into cash. This was a decrease from the previous quarter's cycle of 97.85 days. The decrease in the cash conversion cycle suggests that Enpro Inc improved its efficiency in managing working capital compared to the previous quarter.
Looking at the trend over the past eight quarters, the cash conversion cycle has ranged from a low of 82.01 days in Q3 2022 to a high of 105.67 days in Q2 2023. This indicates some variability in Enpro Inc's working capital management efficiency over time.
Overall, Enpro Inc should aim to keep its cash conversion cycle as low as possible to ensure optimal utilization of its resources and maximize cash flow. Tracking this metric over time can help the company identify areas for improvement in its working capital management practices.