Post Holdings Inc (POST)
Cash conversion cycle
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 54.42 | 50.48 | 47.94 |
| Days of sales outstanding (DSO) | days | 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 | 28.60 | 29.45 | 30.25 |
| Number of days of payables | days | 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 | 37.13 | 29.30 | 28.11 |
| Cash conversion cycle | days | 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 | 45.88 | 50.62 | 50.08 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.26 + 28.98 – 28.14
= 57.09
Based on the data provided, the cash conversion cycle of Post Holdings Inc has fluctuated over the past eight quarters. The cash conversion cycle represents the time taken by the company to convert its investments in inventory into cash receipts from customers.
In Q1 2024, the cash conversion cycle stood at 57.09 days, showing a slight increase from the previous quarter but still higher than the levels seen in Q2 and Q3 of 2023. This indicates that the company took slightly longer to turn its inventory into cash receipts during this period.
Looking back at Q2 and Q3 of 2023, the cash conversion cycle was at its peak, reaching 63.01 days in Q3 2023. This suggests that Post Holdings Inc experienced some challenges in managing its inventory and collections during that time frame.
However, in Q4 2022 and Q1 2023, the company managed to improve its cash conversion cycle, reaching the lowest levels at 41.73 days and 48.48 days, respectively. This indicates that Post Holdings Inc was more efficient in converting its inventory into cash receipts during these quarters.
Overall, fluctuations in the cash conversion cycle of Post Holdings Inc suggest varying efficiency levels in managing working capital components such as inventory and accounts receivable. It is essential for the company to monitor and improve its cash conversion cycle to ensure optimal liquidity and operational performance.
Peer comparison
Dec 31, 2023