RBC Bearings Incorporated (RBC)
Cash conversion cycle
| 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 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 262.46 | 260.93 | 253.00 | 245.06 | 236.74 | 245.72 | 247.44 | 247.87 | 243.02 | 240.87 | 241.42 | 273.40 | 321.56 | 402.80 | 357.08 | 365.47 | 354.55 | 351.58 | 337.06 | 319.83 |
| Days of sales outstanding (DSO) | days | 68.61 | 57.98 | 58.56 | 60.71 | 61.31 | 54.43 | 60.25 | 61.18 | 59.52 | 54.61 | 63.99 | 76.74 | 95.80 | 97.97 | 64.21 | 65.75 | 66.21 | 61.27 | 59.26 | 58.91 |
| Number of days of payables | days | 55.50 | 51.68 | 49.84 | 49.20 | 44.17 | 48.28 | 52.55 | 57.52 | 60.76 | 57.01 | 64.43 | 81.62 | 98.81 | 110.83 | 45.84 | 46.92 | 35.38 | 37.73 | 35.92 | 44.67 |
| Cash conversion cycle | days | 275.58 | 267.23 | 261.72 | 256.56 | 253.89 | 251.88 | 255.14 | 251.52 | 241.79 | 238.47 | 240.98 | 268.51 | 318.55 | 389.93 | 375.46 | 384.30 | 385.39 | 375.11 | 360.39 | 334.08 |
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 (CCC) of RBC Bearings Incorporated has shown fluctuations over the periods provided. From June 30, 2020, to December 31, 2020, the CCC increased steadily, reaching its peak at 389.93 days on December 31, 2021. This indicates that the company required a longer time to convert its investments in inventory and other resources into cash inflows.
However, starting from March 31, 2022, the trend reversed, with the CCC decreasing consistently. By September 30, 2022, the CCC had declined significantly to 240.98 days and continued to decrease to 251.88 days by December 31, 2023. This downward trend suggests an improvement in the efficiency of the company's working capital management and cash conversion processes.
From March 31, 2024, to December 31, 2024, the CCC increased slightly, indicating a potential slowdown in the cash conversion efficiency. The company will need to monitor and potentially address this increase to maintain optimal working capital management.
Overall, the fluctuations in RBC Bearings' cash conversion cycle reflect changes in its operational efficiency, inventory management, and accounts receivable/payable processes. Monitoring and optimizing the CCC is crucial for ensuring the company's liquidity and financial health in the long run.
Peer comparison
Mar 31, 2025