Quanex Building Products (NX)
Cash conversion cycle
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.64 | 35.83 | 40.72 | 35.12 | 29.24 |
| Days of sales outstanding (DSO) | days | 111.30 | 63.01 | 57.33 | 73.55 | 75.68 |
| Number of days of payables | days | 38.21 | 27.20 | 26.24 | 32.93 | 36.95 |
| Cash conversion cycle | days | 157.73 | 71.64 | 71.81 | 75.73 | 67.96 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.64 + 111.30 – 38.21
= 157.73
The cash conversion cycle for Quanex Building Products has shown some fluctuations over the past five years. In October 2024, the cash conversion cycle increased significantly to 157.73 days, indicating that it took the company longer to convert its investments in inventory and other resources into cash during that period. This may suggest inefficiencies in managing working capital and operations that could potentially impact the company's liquidity and overall financial health.
Comparing it to the previous years, the cash conversion cycle was relatively lower in October 2023 and 2022 at 71.64 days and 71.81 days respectively, which could be seen as more efficient in terms of managing working capital and converting resources into cash. However, there was a slight increase in the cash conversion cycle in October 2021 and 2020 at 75.73 days and 67.96 days respectively.
Overall, the trend in the cash conversion cycle for Quanex Building Products has shown fluctuations, and it is important for the company to closely monitor and manage its working capital to improve efficiency in its operations and cash flow management.
Peer comparison
Oct 31, 2024