Nextracker Inc. Class A Common Stock (NXT)
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Days of inventory on hand (DOH) | days | 39.19 | 45.91 | 36.55 | 33.60 | 43.65 | 43.04 | 43.43 | 30.65 | 31.20 | 57.74 | 59.98 | 60.47 | 47.83 | 54.25 | 35.94 | 33.65 | 32.00 |
Days of sales outstanding (DSO) | days | 58.28 | 97.06 | 93.46 | 101.75 | 113.86 | 114.67 | 114.06 | 100.15 | 109.21 | 110.78 | 125.08 | 124.23 | 115.37 | 127.14 | 96.21 | 98.65 | 81.88 |
Number of days of payables | days | 109.54 | 79.74 | 82.90 | 78.40 | 98.81 | 79.62 | 89.30 | 65.81 | 47.76 | 71.57 | 88.92 | 79.12 | 74.05 | 83.99 | 81.90 | 82.83 | 87.67 |
Cash conversion cycle | days | -12.07 | 63.22 | 47.12 | 56.95 | 58.70 | 78.09 | 68.20 | 64.99 | 92.64 | 96.95 | 96.14 | 105.58 | 89.15 | 97.41 | 50.26 | 49.47 | 26.20 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 39.19 + 58.28 – 109.54
= -12.07
The cash conversion cycle of Nextracker Inc. Class A Common Stock has shown fluctuations over the disclosed period.
Between March 31, 2021, and December 31, 2024, the cash conversion cycle ranged from 26.20 days to 105.58 days. This cycle represents the time it takes for the company to convert its investments in raw materials into cash from sales. A shorter cash conversion cycle signifies that the company is able to efficiently manage its working capital and turn its inventory into cash quickly.
The cycle peaked at 105.58 days on June 30, 2022, indicating a significant delay in receiving cash after investing in inventory. However, by March 31, 2025, the cycle showed a negative value of -12.07 days, suggesting that Nextracker Inc. was able to convert its investments into cash at a faster rate than in previous periods.
Overall, monitoring the cash conversion cycle is crucial for assessing a company's operational efficiency and cash flow management. Nextracker Inc. should strive to maintain a reasonable cycle duration to ensure optimal working capital utilization and sustainable business performance.
Peer comparison
Mar 31, 2025