REX American Resources Corporation (REX)

Cash conversion cycle

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Days of inventory on hand (DOH) days 20.98 13.40 22.06 22.76 38.05
Days of sales outstanding (DSO) days — — — — —
Number of days of payables days — — — — —
Cash conversion cycle days 20.98 13.40 22.06 22.76 38.05

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.98 + — – —
= 20.98

The cash conversion cycle of REX American Resources Corporation has shown a decreasing trend over the years, indicating an improvement in the company's efficiency in managing its working capital.

As of January 31, 2021, the cash conversion cycle was 38.05 days, which decreased to 22.76 days by January 31, 2022. Subsequently, the cycle further decreased to 22.06 days by January 31, 2023, signaling a continued efficiency in converting its resources into cash.

The trend continued with a significant drop to 13.40 days as of January 31, 2024, suggesting a more streamlined process in managing cash flows and working capital. However, by January 31, 2025, the cycle increased slightly to 20.98 days, though it remained relatively low compared to previous years.

Overall, the decreasing cash conversion cycle indicates that REX American Resources Corporation has been able to effectively manage its accounts receivable, inventory, and accounts payable, resulting in a more efficient conversion of resources into cash over the years.