Patrick Industries Inc (PATK)
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 | 68.79 | 68.89 | 64.61 | 68.27 | 68.82 | 66.66 | 66.14 | 65.54 | 63.47 | 66.80 | 67.97 | 70.16 | 68.43 | 59.36 | 54.88 | 56.34 | 56.31 | 55.59 | 54.83 | 52.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 68.79 | 68.89 | 64.61 | 68.27 | 68.82 | 66.66 | 66.14 | 65.54 | 63.47 | 66.80 | 67.97 | 70.16 | 68.43 | 59.36 | 54.88 | 56.34 | 56.31 | 55.59 | 54.83 | 52.76 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 68.79 + — – —
= 68.79
The cash conversion cycle for Patrick Industries Inc has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the company's cash conversion cycle ranged from a low of 52.76 days to a high of 70.16 days. A shorter cash conversion cycle indicates that the company is able to efficiently convert its inventory into cash, while a longer cycle suggests inefficiencies in the company's operations.
Throughout the period analyzed, there were periods where the cash conversion cycle increased, indicating potential issues with inventory management or delays in collecting receivables. For example, the cycle increased from 56.34 days on March 31, 2021, to 68.43 days on December 31, 2021, which could indicate challenges in managing working capital effectively during that period.
Overall, it is essential for Patrick Industries Inc to closely monitor its cash conversion cycle to ensure optimized cash flow and efficient operations. Analyzing the components of the cycle, including days inventory outstanding, days sales outstanding, and days payables outstanding, can provide insights into where improvements can be made to strengthen the company's financial performance.
Peer comparison
Dec 31, 2024