RBC Bearings Incorporated (RBC)
Cash conversion cycle
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 255.48 | 260.44 | 266.84 | 353.96 | 531.70 | 531.79 | 515.04 | 400.87 | 321.57 | 402.78 | 357.06 | 364.57 | 354.53 | 322.80 | 288.55 | 258.37 | 234.73 | 232.45 | 229.09 | 224.66 |
| Days of sales outstanding (DSO) | days | 59.70 | 54.43 | 58.79 | 61.18 | 59.52 | 54.62 | — | — | 95.80 | — | — | — | 66.21 | 61.12 | 59.17 | 58.87 | 62.38 | 58.91 | 63.19 | 64.27 |
| Number of days of payables | days | 47.67 | 51.17 | 56.67 | 82.14 | 132.92 | 125.87 | 137.46 | 119.68 | 98.82 | 110.82 | 45.84 | 42.08 | 35.38 | 34.64 | 30.75 | 36.08 | 32.60 | 32.23 | 32.87 | 33.83 |
| Cash conversion cycle | days | 267.51 | 263.70 | 268.96 | 332.99 | 458.29 | 460.54 | 377.59 | 281.19 | 318.55 | 291.95 | 311.22 | 322.49 | 385.37 | 349.27 | 316.97 | 281.15 | 264.50 | 259.12 | 259.41 | 255.11 |
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 some fluctuations over the past few quarters. From December 2019 to March 2020, there was a significant decrease in the cash conversion cycle from 259.12 days to 264.50 days, indicating an improvement in the company's efficiency in managing its working capital.
However, from June 2020 to March 2023, there was a consistent increase in the cash conversion cycle, reaching a peak of 458.29 days in March 2023. This suggests that the company may have faced challenges in collecting receivables, managing inventory, or paying its payables efficiently during this period.
Subsequently, there was a noticeable improvement in the cash conversion cycle from March 2023 to March 2024, with the cycle decreasing to 267.51 days. This improvement could be attributed to better working capital management practices or changes in the company's operating cycle efficiency.
Overall, it is essential for RBC Bearings Incorporated to closely monitor and manage its cash conversion cycle to ensure effective utilization of its working capital and maintain healthy liquidity levels.
Peer comparison
Mar 31, 2024