RPM International Inc (RPM)
Cash conversion cycle
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.70 | 59.21 | 60.04 | 60.60 | 61.91 | 73.79 | 77.61 | 75.95 | 71.13 | 72.57 | 65.20 | 64.61 | 61.92 | 62.91 | 57.96 | 54.99 | 57.41 | 63.53 | 61.58 | 60.17 |
| Days of sales outstanding (DSO) | days | 71.85 | 54.27 | 62.30 | 71.66 | 76.69 | 61.55 | 69.51 | 74.56 | 79.04 | 62.10 | 68.90 | 70.56 | 77.68 | 63.32 | 69.78 | 75.97 | 76.52 | 62.14 | 69.10 | 73.66 |
| Number of days of payables | days | 35.80 | 31.66 | 35.43 | 37.10 | 37.13 | 31.79 | 37.96 | 44.55 | 46.95 | 41.13 | 41.06 | 41.95 | 47.34 | 39.19 | 37.77 | 36.91 | 37.92 | 33.05 | 33.12 | 33.36 |
| Cash conversion cycle | days | 88.76 | 81.82 | 86.91 | 95.16 | 101.48 | 103.56 | 109.16 | 105.96 | 103.23 | 93.53 | 93.04 | 93.21 | 92.26 | 87.04 | 89.97 | 94.04 | 96.01 | 92.62 | 97.56 | 100.48 |
May 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.70 + 71.85 – 35.80
= 88.76
The cash conversion cycle of RPM International Inc has shown some fluctuations over the past 20 quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From Aug 2019 to May 2020, the company's cash conversion cycle fluctuated between 92.62 days and 100.48 days, showing a slightly increasing trend during this period. However, from May 2020 to Aug 2021, there was a gradual decrease in the cash conversion cycle from 96.01 days to 93.21 days.
Subsequently, there was an increase in the cycle from Aug 2021 to Aug 2022, reaching a peak of 109.16 days in Nov 2022. However, from Nov 2022 to May 2024, the cash conversion cycle showed a declining trend, dropping to 88.76 days.
Overall, the company's performance in managing its working capital and converting it into cash has been somewhat volatile over the past few years, with periods of improvement followed by periods of deterioration. This indicates fluctuations in the efficiency of managing inventory, receivables, and payables, which can impact the company's liquidity and financial health.
Peer comparison
May 31, 2024