Spire Inc (SR)

Cash conversion cycle

		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	Mar 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	311.73	275.91	263.71	346.94	356.58	353.37	301.66	558.67	646.83	470.23	272.05	131.32	81.81	59.54	46.20	48.12	48.08	33.68	27.37	46.02
Days of sales outstanding (DSO)	days	25.40	33.73	61.24	62.75	26.30	38.74	70.32	72.76	35.15	49.40	76.79	76.78	54.40	56.02	75.89	57.27	24.38	28.43	48.74	50.64
Number of days of payables	days	280.19	246.05	237.44	368.51	322.90	285.34	343.00	759.68	945.66	910.07	594.05	172.42	109.95	80.97	90.37	68.02	61.08	45.51	47.67	76.35
Cash conversion cycle	days	56.94	63.58	87.52	41.18	59.98	106.77	28.97	-128.26	-263.68	-390.45	-245.21	35.68	26.26	34.58	31.72	37.37	11.38	16.60	28.44	20.31

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 311.73 + 25.40 – 280.19
= 56.94

The cash conversion cycle of Spire Inc has fluctuated over the past few quarters. The company's cash conversion cycle, which represents the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales, was positive in most periods, indicating efficient management of operating capital.

In the most recent quarter, ending September 30, 2024, the cash conversion cycle was 56.94 days, indicating that it took the company approximately 57 days to convert its investment in inventory and accounts receivable into cash from sales. This suggests a reasonable level of efficiency in managing working capital.

However, the cash conversion cycle has shown some volatility in previous quarters, with periods of longer conversion cycles, such as in June 30, 2023, with a cycle of 106.77 days, and March 31, 2023, with a cycle of 87.52 days. These longer cycles may indicate potential inefficiencies in managing inventory levels, collecting receivables, or both during those periods.

The negative cash conversion cycles in some of the quarters, like December 31, 2022 (-128.26 days) and September 30, 2022 (-263.68 days), indicate that Spire Inc may have been able to convert its investments into cash cycles more quickly than in other periods, possibly due to strong sales and efficient working capital management.

Overall, while there have been fluctuations in the cash conversion cycle of Spire Inc, the company appears to generally manage its working capital efficiently, as seen in the current positive cycles. It will be important for the company to monitor and optimize its cash conversion cycle to ensure continued financial stability and effective management of operating capital.