Enviri Corporation (NVRI)
Cash conversion cycle
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.70 | 39.14 | 38.57 | 40.67 | 19.44 | 19.34 | 19.55 | 19.61 | 19.12 | 18.94 | 18.51 | 17.02 | 15.20 | 34.65 | 33.93 | 39.01 | 42.08 | 44.07 | 48.45 | 50.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 34.70 | 39.14 | 38.57 | 40.67 | 19.44 | 19.34 | 19.55 | 19.61 | 19.12 | 18.94 | 18.51 | 17.02 | 15.20 | 34.65 | 33.93 | 39.01 | 42.08 | 44.07 | 48.45 | 50.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.70 + — – —
= 34.70
The cash conversion cycle of Enviri Corporation has shown fluctuations over the periods analyzed. From March 31, 2020, to December 31, 2020, the cash conversion cycle decreased steadily, indicating an improvement in the company's efficiency in managing its cash flows, inventory, and receivables.
Subsequently, from March 31, 2021, there was a significant reduction in the cash conversion cycle, reaching its lowest point of 15.20 days on December 31, 2021. This sharp decline suggests the company was able to collect payments from customers, convert inventory into sales, and pay its suppliers more rapidly.
However, from March 31, 2022, to December 31, 2024, the cash conversion cycle increased, signaling a potential slowdown in the management of cash, inventory, and receivables. The cycle peaked at 40.67 days on March 31, 2024, before declining slightly in the following periods.
It is essential for Enviri Corporation to closely monitor its cash conversion cycle to ensure operational efficiency, maximize cash flow, and maintain a healthy working capital position. Efforts to shorten the cycle by reducing inventory holding periods, improving accounts receivable collection practices, and extending payment terms with suppliers could enhance the company's overall financial performance.