RBC Bearings Incorporated (RBC)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 255.48 | 247.92 | 321.57 | 354.53 | 305.99 |
| Days of sales outstanding (DSO) | days | 59.70 | 59.52 | 95.80 | 66.21 | 64.72 |
| Number of days of payables | days | 47.67 | 61.98 | 98.82 | 35.38 | 42.50 |
| Cash conversion cycle | days | 267.51 | 245.46 | 318.55 | 385.37 | 328.22 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 255.48 + 59.70 – 47.67
= 267.51
The cash conversion cycle of RBC Bearings Incorporated has shown fluctuations over the past five years.
In the most recent fiscal year ending March 31, 2024, the company's cash conversion cycle improved to 267.51 days compared to the previous year's 245.46 days. This indicates that RBC Bearings was able to manage its cash flow more efficiently, reducing the time it takes to convert its investments in inventory and accounts receivable into cash.
Looking back to the fiscal years 2022 and 2023, the cash conversion cycle was less favorable at 318.55 days and 385.37 days, respectively. This suggests that the company faced challenges in managing its working capital during those periods, resulting in a longer cash conversion cycle.
In fiscal year 2021, the cash conversion cycle was 328.22 days, indicating a slower conversion of assets into cash compared to the most recent year but an improvement compared to the fiscal years 2022 and 2023.
Overall, RBC Bearings Incorporated has shown variability in its cash conversion cycle over the past five years, with recent improvements suggesting better efficiency in managing its working capital and cash flow.
Peer comparison
Mar 31, 2024