QuinStreet Inc (QNST)

Cash conversion cycle

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	—	—	—	2.99	5.31
Days of sales outstanding (DSO)	days	45.32	66.54	42.59	51.06	55.48
Number of days of payables	days	23.12	31.02	26.02	29.30	32.50
Cash conversion cycle	days	22.20	35.53	16.57	24.75	28.28

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 45.32 – 23.12
= 22.20

The cash conversion cycle (CCC) for QuinStreet Inc demonstrates significant variability over the analyzed period from June 30, 2021, to June 30, 2025. Initially, as of June 30, 2021, the CCC stood at approximately 28.28 days, indicating that it took just over four weeks for the company to convert its investments in inventory and receivables into cash, after accounting for its payables.

By June 30, 2022, the CCC decreased to around 24.75 days, reflecting an improvement in the company's efficiency in managing its working capital components. This reduction suggests that QuinStreet was able to shorten the time it takes to convert resources into cash, potentially through faster receivables collection or extended payables.

The downward trend continued into June 30, 2023, when the CCC further declined to approximately 16.57 days, revealing a notable enhancement in cash conversion efficiency. This period represents the shortest duration within the observed timeframe, implying heightened operational effectiveness in managing the company's receivables, payables, or inventory turnover.

However, the trend reversed in the subsequent period leading to June 30, 2024, when the CCC increased significantly to approximately 35.53 days. This escalation indicates a deterioration in liquidity management, possibly due to slower receivables collection, longer inventory holding periods, or shorter payables, which collectively extended the duration to convert resources into cash.

In the final year, by June 30, 2025, the CCC decreased again to around 22.20 days. This reduction implies a partial recovery in cash conversion efficiency, although it does not reach the levels observed in 2023. The fluctuations suggest that QuinStreet's operational efficiency concerning cash flow management is subject to variation, potentially influenced by internal strategic decisions or external market conditions.

Overall, the analysis indicates that QuinStreet Inc has experienced periods of both improvement and decline in its cash conversion cycle, with the most efficient point observed in mid-2023. The cyclical nature of these changes emphasizes the importance of ongoing monitoring and strategic management of receivables, payables, and inventory to optimize cash flow.