QuinStreet Inc (QNST)

Cash conversion cycle

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Days of inventory on hand (DOH)	days	—	—	2.99	5.31	10.67
Days of sales outstanding (DSO)	days	66.54	42.66	51.14	57.71	50.82
Number of days of payables	days	31.02	26.02	29.30	32.50	30.64
Cash conversion cycle	days	35.53	16.65	24.83	30.52	30.85

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 66.54 – 31.02
= 35.53

QuinStreet Inc's cash conversion cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has been fluctuating over the past five years.

In June 2024, the cash conversion cycle increased to 35.53 days compared to the previous year, indicating a longer period for the company to convert its resources into cash. This could potentially be a result of slower sales turnover, increased inventory holding periods, or delayed receivables collection.

The exceptionally low cash conversion cycle of 16.65 days in June 2023 suggests that during that period, QuinStreet Inc efficiently managed its cash flows, possibly through quicker inventory turnover and shorter receivables collection periods.

Overall, the trend in QuinStreet Inc's cash conversion cycle over the past five years indicates some variability in the company's ability to efficiently manage its working capital and convert investments into cash. Further analysis and comparison with industry benchmarks may provide additional insights into the company's liquidity and operational efficiency.