Spire Inc (SR)

Cash conversion cycle

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	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	54.40	43.45	34.93
Days of sales outstanding (DSO)	days	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	22.64	30.24	61.15
Number of days of payables	days	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	83.43	81.75	89.83
Cash conversion cycle	days	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	-6.39	-8.05	6.26

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 346.94 + 62.75 – 368.51
= 41.18

The cash conversion cycle for Spire Inc. has been fluctuating over the past few quarters. In Q1 2024, the company's cash conversion cycle stood at 73.99 days, indicating that it takes approximately 74 days for Spire Inc. to convert its investments in inventory and other resources back into cash. This suggests a longer cycle compared to the previous quarter, Q4 2023, where the cycle was 50.15 days.

Looking further back, in Q3 2023, the cash conversion cycle was 67.91 days, showing an increase compared to Q2 2023 at 81.94 days. Q1 2023 had a cash conversion cycle of 75.03 days. Notably, in Q4 2022, the company had a substantially shorter cash conversion cycle of 29.84 days, indicating an efficient conversion of resources to cash. However, the cycle was negative in Q3 2022 (-8.55 days), implying a potential issue with managing cash flow efficiency.

In Q2 2022, the cash conversion cycle was 23.87 days, showing an improvement from the negative cycle in the previous quarter. Overall, the fluctuating trend in the cash conversion cycle for Spire Inc. highlights varying efficiency levels in managing working capital over the analyzed periods.