Prestige Brand Holdings Inc (PBH)

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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Days of inventory on hand (DOH)	days	107.12	107.78	112.11	109.07	99.95	106.83	115.85	121.53	117.78	118.47	106.25	103.24	94.23	86.43	91.76	93.84	105.99	106.11	102.34	104.44
Days of sales outstanding (DSO)	days	62.33	54.61	53.76	56.30	57.34	56.09	51.32	51.02	54.06	51.71	48.10	48.50	46.79	46.34	52.34	48.39	44.37	44.25	46.48	42.70
Number of days of payables	days	13.72	13.88	22.37	28.38	28.08	28.27	31.88	41.40	45.58	48.02	42.49	44.85	43.66	32.62	32.35	27.53	42.39	26.40	49.74	18.88
Cash conversion cycle	days	155.73	148.52	143.50	136.99	129.20	134.64	135.29	131.15	126.25	122.16	111.86	106.89	97.36	100.15	111.75	114.70	107.97	123.96	99.08	128.26

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 fluctuations over the years based on the provided data. The cycle reflects the time taken by the company to convert its investments in inventory into cash receipts from customers.

From June 30, 2020 to September 30, 2021, the company managed to reduce its cash conversion cycle from 128.26 days to 111.75 days, indicating improved efficiency in managing its working capital. However, from September 30, 2021 onwards, the cycle started increasing again, reaching 155.73 days as of March 31, 2025.

The increasing trend in the cash conversion cycle after 2021 suggests potential challenges in managing inventory, collecting receivables, and paying payables efficiently. This may indicate issues such as inventory management problems, slower collections from customers, or delayed payments to suppliers.

Overall, the analysis of Prestige Brand Holdings Inc's cash conversion cycle highlights the importance of monitoring working capital efficiency to ensure optimal cash flow management and operational performance.