Post Holdings Inc (POST)
Cash conversion cycle
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 49.00 | 52.03 | 52.65 | 56.26 | 56.43 | 58.03 | 46.11 | 48.08 | 45.72 | 45.36 | 47.94 | 60.57 | 46.48 | 80.43 | 76.28 | 65.05 | 67.08 | 56.60 | 51.81 | 55.20 |
| Days of sales outstanding (DSO) | days | 26.85 | 24.90 | 26.74 | 28.98 | 26.75 | 31.12 | 33.44 | 32.36 | 33.95 | 35.75 | 32.59 | 37.75 | 31.38 | 38.63 | 37.45 | 28.99 | 28.28 | 26.72 | 34.49 | 28.80 |
| Number of days of payables | days | 31.43 | 25.69 | 26.00 | 28.14 | 26.35 | 28.98 | 31.25 | 34.35 | 37.69 | 34.65 | 35.76 | 41.51 | 37.47 | 52.92 | 48.47 | 41.63 | 41.17 | 29.21 | 28.87 | 31.17 |
| Cash conversion cycle | days | 44.42 | 51.24 | 53.40 | 57.09 | 56.84 | 60.17 | 48.31 | 46.09 | 41.97 | 46.46 | 44.78 | 56.80 | 40.39 | 66.14 | 65.26 | 52.41 | 54.19 | 54.11 | 57.43 | 52.83 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 49.00 + 26.85 – 31.43
= 44.42
The cash conversion cycle of Post Holdings Inc, a measure of how long it takes for the company to convert its investments in inventory and accounts receivable into cash, has shown some variability over the past several quarters.
In the most recent quarter, the cash conversion cycle was 44.42 days, indicating an improvement compared to the previous quarter at 51.24 days. This decrease suggests that the company was able to manage its inventory and accounts receivable more efficiently, resulting in a quicker conversion into cash.
Looking further back over the past few quarters, we see fluctuations in the cash conversion cycle ranging from a low of 40.39 days to a high of 66.14 days. This variability may reflect changes in the company's working capital management practices, sales patterns, or inventory turnover rates.
Overall, a lower cash conversion cycle is generally considered more favorable as it indicates that the company is able to generate cash more quickly from its operations. Post Holdings Inc should continue to focus on optimizing its working capital processes to maintain an efficient cash conversion cycle and enhance its liquidity position.
Peer comparison
Sep 30, 2024