QuinStreet Inc (QNST)

Cash conversion cycle

Jun 30, 2025 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
Days of inventory on hand (DOH) days — — — — — — — — — — — — 2.99 — — — — — — —
Days of sales outstanding (DSO) days 45.32 48.63 59.09 82.56 66.54 66.67 49.63 44.04 42.59 64.59 45.35 48.67 51.06 48.38 39.76 53.89 55.48 55.22 50.04 50.17
Number of days of payables days 23.12 21.92 24.00 31.42 31.02 29.30 24.30 24.20 26.02 27.54 26.16 28.82 29.30 27.51 27.35 33.48 32.50 30.27 29.82 38.87
Cash conversion cycle days 22.20 26.72 35.09 51.15 35.53 37.37 25.33 19.84 16.57 37.05 19.19 19.85 24.75 20.87 12.41 20.42 22.98 24.94 20.22 11.29

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) of QuinStreet Inc. exhibits notable fluctuations over the analyzed period from September 2020 to June 2025. Initially, the CCC was relatively moderate at approximately 11.29 days as of September 2020, indicating efficient management of receivables, payables, and inventory. However, during the subsequent quarters through December 2021, the CCC increased significantly, reaching a peak of 24.94 days in March 2021 and fluctuating thereafter, with transient declines and rises.

A marked decrease occurred at the end of 2021, with the CCC dropping to approximately 12.41 days. This suggests an improvement in the company's ability to convert its investments into cash, reducing the period between outflows and inflows. Nonetheless, in the following year, there was a substantial rise; particularly, the CCC peaked at 37.05 days in March 2023, indicating a longer cycle and potentially slower collection periods or extended payables.

The most recent data points reveal a variable trend, with the CCC decreasing again to 16.57 days in June 2023, followed by an increase to 51.15 days in September 2024—the highest level within the period—implying a significant elongation of the cycle, possibly due to extended receivables or delays in collection. Subsequently, the CCC tends to decrease, reaching 22.20 days by June 2025, suggesting some recovery towards more efficient cash cycle management.

Overall, the cash conversion cycle of QuinStreet Inc. has demonstrated considerable volatility, with periods of both improvement and deterioration. The extended cycles observed in certain periods may reflect changes in operational efficiency, customer payment behavior, or strategic shifts impacting receivable and payable management. The recent reductions in the CCC hint at efforts to optimize working capital, yet the historical fluctuations indicate ongoing variability in liquidity and operational cycle efficiency.