Nextracker Inc. Class A Common Stock (NXT)

Cash conversion cycle

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023
Days of inventory on hand (DOH)	days	43.65	43.04	43.43
Days of sales outstanding (DSO)	days	76.52	58.43	60.70
Number of days of payables	days	98.81	79.62	89.30
Cash conversion cycle	days	21.36	21.85	14.83

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 43.65 + 76.52 – 98.81
= 21.36

The cash conversion cycle of Nextracker Inc. Class A Common Stock has displayed fluctuations over the past six months. The cycle was 14.83 days at the end of September 2023, indicating a relatively efficient management of cash, receivables, and payables. However, by the end of December 2023, the cycle had increased to 21.85 days, suggesting a potential delay in converting sales into cash or managing working capital effectively.

By the end of March 2024, the cash conversion cycle improved slightly to 21.36 days but remained high compared to the September 2023 level. This trend implies a need for the company to focus on optimizing cash flow processes, reducing receivables collection period, and managing payables efficiently to enhance its liquidity position and overall financial performance.

Overall, monitoring and improving the cash conversion cycle is vital for Nextracker Inc. to sustain its operations, support growth initiatives, and ensure financial stability in the competitive market environment.