RPM International Inc (RPM)
Cash conversion cycle
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 87.53 | 88.69 | 84.36 | 85.78 | 80.80 | 89.97 | 90.53 | 90.56 | 91.93 | 108.49 | 113.47 | 110.52 | 103.54 | 106.61 | 96.37 | 96.16 | 92.51 | 93.77 | 86.59 | 82.43 |
| Days of sales outstanding (DSO) | days | 74.71 | 55.26 | 64.13 | 67.28 | 73.51 | 55.76 | 63.98 | 70.60 | 78.08 | 60.79 | 68.49 | 73.52 | 77.96 | 61.25 | 67.95 | 69.55 | 76.56 | 62.63 | 68.97 | 75.00 |
| Number of days of payables | days | 63.83 | 54.37 | 57.04 | 59.29 | 54.88 | 48.11 | 53.42 | 55.44 | 55.13 | 46.73 | 55.49 | 64.83 | 68.34 | 60.43 | 60.69 | 62.44 | 70.73 | 58.42 | 56.43 | 55.34 |
| Cash conversion cycle | days | 98.41 | 89.59 | 91.45 | 93.78 | 99.43 | 97.62 | 101.08 | 105.72 | 114.88 | 122.55 | 126.47 | 119.21 | 113.16 | 107.43 | 103.63 | 103.27 | 98.35 | 97.98 | 99.12 | 102.09 |
May 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.53 + 74.71 – 63.83
= 98.41
The analysis of RPM International Inc.'s cash conversion cycle (CCC) over the period from August 2020 to May 2025 indicates a general trend of fluctuations with a gradual overall decrease in the duration of the cycle.
Initially, the CCC was approximately 102.09 days as of August 2020. It exhibited slight variations over the subsequent periods, peaking at 126.47 days in November 2022, representing a broadening of the cycle and potentially indicating increased inventory holding periods or longer receivables collection times. This upward trend reached its maximum in late 2022 and early 2023.
Subsequently, a downward trend emerged, with the CCC decreasing to 97.62 days by February 2024. This reduction suggests improvements in operational efficiency, such as faster receivables collection, shorter inventory turnover, or more efficient payables management. The most recent data points reveal a further decrease, with the cycle reaching approximately 89.59 days in February 2025.
Overall, the data reflects a pattern of initial stability with periodic increases, followed by a consistent reduction in the cash conversion cycle. This could imply the company's strategic improvements in working capital management, enhancing liquidity and operational efficiency over the analyzed period. The current and projected figures suggest that RPM International Inc. is progressively optimizing its cash flow cycle, potentially translating into improved cash flow and financial flexibility.
Peer comparison
May 31, 2025