Standex International Corporation (SXI)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.94 | 72.48 | 78.88 | 82.62 | 80.80 |
| Days of sales outstanding (DSO) | days | 79.78 | 84.46 | 76.55 | 70.36 | 69.47 |
| Number of days of payables | days | 65.62 | 52.73 | 54.92 | 58.44 | 65.75 |
| Cash conversion cycle | days | 111.10 | 104.22 | 100.51 | 94.53 | 84.51 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.94 + 79.78 – 65.62
= 111.10
The provided data delineates the evolution of Standex International Corporation’s cash conversion cycle (CCC) over a four-year period from June 30, 2021 to June 30, 2025. The CCC measures the average number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales, reflecting the efficiency of its working capital management.
Initially, as of June 30, 2021, the CCC was approximately 84.51 days. Over the subsequent years, the cycle exhibits a consistent upward trend, reaching approximately 94.53 days by June 30, 2022. This increase continues into 2023, where the cycle extends further to roughly 100.51 days. The trend persists through June 30, 2024, with the CCC rising to about 104.22 days, and ultimately reaching approximately 111.10 days by June 30, 2025.
The progressive elongation of the cash conversion cycle indicates that the company's overall efficiency in managing its receivables, inventory, and payables has declined over the observed period. Specifically, the increasing cycle suggests that it is taking longer for Standex to convert its investments in inventory and receivables into cash. This could be attributable to factors such as extended receivables collection periods, increased inventory holding durations, or delays in accounts payable cycles.
In conclusion, the data reflects a trend of gradual worsening in Standex’s working capital management efficiency over these years, with the cash conversion cycle lengthening by approximately 26.59 days across the four-year span. This trend warrants further investigation into the company’s operational and credit policies, as increased cycle lengths may impact liquidity and operational flexibility if not managed appropriately.
Peer comparison
Jun 30, 2025