Enviri Corporation (NVRI)

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	19.28	19.34	19.55	19.61	19.12	18.94	19.22	18.57	17.26	49.60	45.90	49.58	17.92	50.64	73.04	110.90	198.82	195.05	179.13	204.31
Days of sales outstanding (DSO)	days	55.50	57.71	62.68	58.12	56.00	57.42	57.87	81.11	81.15	108.54	105.25	103.99	105.08	110.14	113.57	97.29	100.39	85.17	103.38	93.85
Number of days of payables	days	44.37	46.20	49.09	52.15	48.31	47.85	50.56	45.89	45.58	69.73	60.04	60.68	48.21	68.78	89.05	120.06	223.85	215.32	235.89	220.00
Cash conversion cycle	days	30.41	30.84	33.13	25.57	26.81	28.51	26.54	53.79	52.83	88.42	91.11	92.89	74.79	92.00	97.56	88.13	75.36	64.90	46.63	78.16

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.28 + 55.50 – 44.37
= 30.41

The cash conversion cycle of Enviri Corp has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 30.41 days, slightly decreasing from the previous quarter. This indicates that Enviri Corp takes an average of 30.41 days to convert its investments in inventory and other resources into cash from sales.

Looking at the trend over the past year, the cash conversion cycle has varied between 25.57 days and 33.27 days, with an overall downward trend since Q1 2022. This suggests that Enviri Corp has been more efficient in managing its working capital and converting it into cash over time.

A shorter cash conversion cycle generally indicates that the company is able to quickly recoup its investment in inventory and generate cash from sales, which can be a positive sign of operational efficiency. However, it is important for Enviri Corp to continue monitoring and managing its cash conversion cycle to ensure optimal working capital management and financial performance.