Prestige Brand Holdings Inc (PBH)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	107.12	101.08	117.78	94.23	105.99
Days of sales outstanding (DSO)	days	62.33	57.34	54.06	46.79	44.37
Number of days of payables	days	13.72	28.40	45.58	43.66	42.39
Cash conversion cycle	days	155.73	130.01	126.25	97.36	107.97

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 107.12 + 62.33 – 13.72
= 155.73

The cash conversion cycle of Prestige Brand Holdings Inc has shown some fluctuations over the years. In the fiscal year ending March 31, 2021, the company had a cash conversion cycle of 107.97 days, reflecting the average number of days it took for the company to convert its investments in inventory and other resources into cash receipts from customers.

In the subsequent years, there was a slight improvement in efficiency as the cash conversion cycle decreased to 97.36 days by March 31, 2022. However, in the following years, the cash conversion cycle increased significantly to 126.25 days by March 31, 2023, and continued to rise to 130.01 days by March 31, 2024, indicating a potential slowdown in the company's ability to convert resources into cash.

By the end of the fiscal year March 31, 2025, the cash conversion cycle further increased to 155.73 days, which may suggest potential liquidity challenges or inefficiencies in managing working capital. It is essential for the company to closely monitor and address the factors contributing to the prolonged cash conversion cycle to optimize its cash flow and overall financial performance.