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.