Skyline Corporation (SKY)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 95.32 | 71.00 | 70.49 | 73.78 | 80.16 | 73.07 | 46.15 | 44.10 | 41.24 | 42.75 | 47.29 | 62.07 | 54.44 | 44.45 | 45.37 | 53.28 | 53.51 | 46.66 | 47.04 | 41.68 |
| Days of sales outstanding (DSO) | days | — | 10.49 | 11.89 | 12.38 | 11.91 | 8.97 | 10.04 | 7.89 | 9.42 | 6.30 | 11.15 | 19.37 | 14.97 | 8.36 | 14.31 | 13.33 | 14.77 | 11.84 | 13.79 | 12.47 |
| Number of days of payables | days | 17.22 | 9.42 | 13.92 | 14.17 | 12.78 | 11.02 | 12.87 | 10.60 | 9.12 | 7.61 | 13.96 | 16.18 | 20.79 | 10.62 | 14.54 | 18.38 | 18.43 | 13.74 | 16.24 | 11.64 |
| Cash conversion cycle | days | 78.10 | 72.07 | 68.46 | 72.00 | 79.29 | 71.02 | 43.32 | 41.39 | 41.55 | 41.43 | 44.48 | 65.27 | 48.62 | 42.19 | 45.13 | 48.23 | 49.84 | 44.76 | 44.60 | 42.51 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 95.32 + — – 17.22
= 78.10
The cash conversion cycle of Skyline Corporation has shown some fluctuations over the reporting periods. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From June 2020 to June 2023, the cash conversion cycle remained relatively stable, fluctuating within a range of approximately 6-8 days. However, there was a notable increase in the cycle duration in the second half of 2023, peaking at 71.02 days in December 2023. This increase suggests that Skyline Corporation may have experienced challenges in managing its working capital efficiently during this period.
Subsequently, there was a significant improvement in the cash conversion cycle in the following reporting periods, with the cycle decreasing to around 41-44 days by September 2024. This reduction indicates that the company was able to streamline its operations and optimize its cash flow management.
In the most recent periods, the cash conversion cycle saw a slight uptick, exceeding 70 days in March 2024 and December 2024. This increase may warrant further analysis to identify the underlying reasons and assess the potential impact on Skyline Corporation's overall financial performance.
Overall, the fluctuating nature of the cash conversion cycle for Skyline Corporation underscores the importance of closely monitoring working capital management practices to ensure optimal efficiency and liquidity in the company's operations.
Peer comparison
Mar 31, 2025