Standex International Corporation (SXI)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.36 | 56.08 | 59.08 | 55.71 | 79.77 |
| Days of sales outstanding (DSO) | days | 61.45 | 56.84 | 61.81 | 70.34 | 64.21 |
| Number of days of payables | days | 37.36 | 39.04 | 41.79 | 45.34 | 51.51 |
| Cash conversion cycle | days | 75.45 | 73.88 | 79.09 | 80.72 | 92.47 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.36 + 61.45 – 37.36
= 75.45
The cash conversion cycle for Standex International Corporation has varied over the past five years. In the most recent fiscal year ending on June 30, 2024, the company's cash conversion cycle was 75.45 days, which represents the amount of time it takes for the company to convert its investments in inventory into cash received from customers after paying its suppliers.
Compared to the previous year, the cash conversion cycle has improved slightly from 73.88 days in June 2023. This suggests that the company may have managed its working capital more efficiently in the most recent fiscal year.
Looking back further, the cash conversion cycle was highest in June 2020 at 92.47 days and has generally trended downward since then. The decreasing trend indicates that Standex International Corporation has made progress in streamlining its operations, reducing the time it takes to convert inventory to cash.
Overall, the company's ability to manage its cash conversion cycle is crucial for optimizing its working capital and liquidity. By continuing to focus on improving this metric, Standex International Corporation can enhance its financial performance and efficiency in the future.
Peer comparison
Jun 30, 2024