Skyline Corporation (SKY)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.53 | 35.17 | 46.81 | 46.01 | 35.73 |
| Days of sales outstanding (DSO) | days | 11.68 | 9.44 | 15.00 | 14.80 | 12.23 |
| Number of days of payables | days | 9.97 | 7.77 | 17.87 | 15.85 | 10.94 |
| Cash conversion cycle | days | 64.24 | 36.83 | 43.93 | 44.96 | 37.02 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.53 + 11.68 – 9.97
= 64.24
The cash conversion cycle of Skyline Corporation has shown fluctuations over the past five years. In March 2020, the company had a cash conversion cycle of 37.02 days, which increased to 44.96 days by March 2021. However, there was a slight improvement in efficiency by March 2022, with the cycle decreasing to 43.93 days. By March 2023, the cycle decreased further to 36.83 days, indicating better management of working capital.
However, there was a significant deterioration in the cash conversion cycle by March 2024, where it increased to 64.24 days, which could imply potential issues with the management of accounts receivable, inventory, or accounts payable. Overall, the trend of the cash conversion cycle for Skyline Corporation suggests variable efficiency in converting its investments in raw materials and other inputs into cash receipts from sales.
Peer comparison
Mar 31, 2024