QuinStreet Inc (QNST)

Cash conversion cycle

		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	Sep 30, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	2.99	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	66.54	66.67	49.63	44.04	42.66	64.59	45.35	48.67	51.14	48.38	39.76	53.89	57.71	55.22	50.04	50.17	50.82	54.06	52.62	58.08
Number of days of payables	days	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	30.64	33.22	29.51	35.64
Cash conversion cycle	days	35.53	37.37	25.33	19.84	16.65	37.05	19.19	19.85	24.83	20.87	12.41	20.42	25.21	24.94	20.22	11.29	20.18	20.84	23.11	22.44

June 30, 2024 calculation

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

The cash conversion cycle (CCC) of QuinStreet Inc has fluctuated over the past 20 quarters, ranging from as low as 11.29 days to as high as 37.37 days. The CCC measures the time it takes for a company to convert its investment in inventory back into cash, indicating the efficiency of its working capital management.

On average, QuinStreet Inc has maintained a CCC around 20-25 days, with some quarters showing improved efficiency while others experienced longer cycles. A shorter CCC generally signifies that the company is efficient in managing its cash flows, inventory turnover, and accounts receivable collection.

It is important to note that a low CCC may indicate aggressive sales policies or inventory management, whereas a high CCC may suggest slower sales, inefficient inventory turnover, or delays in accounts receivable collection. Therefore, continuous monitoring and analysis of the CCC are crucial for assessing the financial health and operational efficiency of QuinStreet Inc.