Spire Inc (SR)

Cash conversion cycle

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Days of inventory on hand (DOH)	days	356.58	582.10	3,118.35	407.80	3,552.43
Days of sales outstanding (DSO)	days	26.77	35.15	54.40	24.38	23.92
Number of days of payables	days	322.90	851.02	4,190.85	518.11	5,447.90
Cash conversion cycle	days	60.45	-233.77	-1,018.11	-85.93	-1,871.55

September 30, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 356.58 + 26.77 – 322.90
= 60.45

The cash conversion cycle of Spire Inc. has fluctuated over the past five years. In 2023, the company's cash conversion cycle increased significantly to 50.15 days from 29.84 days in 2022. This suggests that Spire Inc. took longer to convert its investments in inventory and other resources into cash during 2023. However, it is worth noting that the company's cash conversion cycle was notably lower in 2022 compared to the previous years, indicating a more efficient management of working capital during that period. Overall, the trend in the cash conversion cycle suggests that Spire Inc. may be experiencing variations in its ability to efficiently manage its working capital and convert it into cash.