RBC Bearings Incorporated (RBC)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 262.46 | 255.48 | 247.91 | 321.56 | 354.55 |
| Days of sales outstanding (DSO) | days | 68.61 | 61.31 | 59.52 | 95.80 | 66.21 |
| Number of days of payables | days | 55.50 | 47.67 | 61.98 | 98.81 | 35.38 |
| Cash conversion cycle | days | 275.58 | 269.12 | 245.45 | 318.55 | 385.39 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 262.46 + 68.61 – 55.50
= 275.58
The cash conversion cycle for RBC Bearings Incorporated has shown a decreasing trend over the past five years, indicating an improvement in the company's efficiency in managing its working capital.
As of March 31, 2021, the cash conversion cycle was 385.39 days, which decreased to 318.55 days by March 31, 2022. Subsequently, it continued to decrease to 245.45 days by March 31, 2023, before slightly increasing to 269.12 days by March 31, 2024, and reaching 275.58 days by March 31, 2025.
Overall, the downward trend in the cash conversion cycle signifies that RBC Bearings Incorporated has been able to optimize its cash flow management, reducing the time it takes to convert inventory and receivables into cash. This improvement may indicate enhanced operational efficiency and effectiveness in the company's working capital management over the years.
Peer comparison
Mar 31, 2025