Standex International Corporation (SXI)
Cash conversion cycle
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.08 | 54.46 | 56.12 | 55.32 | 55.49 | 58.63 | 58.74 | 54.56 | 59.08 | 58.75 | 58.96 | 59.88 | 56.43 | 63.27 | 65.34 | 67.29 | 61.91 | 57.15 | 70.89 | 63.00 |
| Days of sales outstanding (DSO) | days | 61.64 | 61.92 | 59.53 | 58.28 | 56.84 | 57.14 | 60.80 | 59.74 | 61.81 | 66.26 | 63.03 | 65.06 | 70.34 | 72.17 | 61.54 | 60.40 | 54.19 | 49.66 | 51.77 | 50.07 |
| Number of days of payables | days | 37.16 | 33.45 | 36.37 | 34.94 | 38.63 | 37.87 | 36.86 | 36.71 | 41.79 | 42.56 | 43.41 | 47.55 | 45.92 | 46.39 | 39.99 | 36.77 | 39.98 | 36.31 | 45.56 | 42.69 |
| Cash conversion cycle | days | 75.57 | 82.94 | 79.29 | 78.67 | 73.70 | 77.90 | 82.68 | 77.59 | 79.09 | 82.46 | 78.58 | 77.38 | 80.85 | 89.05 | 86.88 | 90.92 | 76.12 | 70.49 | 77.11 | 70.38 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.08 + 61.64 – 37.16
= 75.57
The cash conversion cycle of Standex International Corporation has shown some fluctuations over the past few quarters. The average cash conversion cycle over the period is approximately 79 days. This indicates that, on average, it takes the company about 79 days to convert its investments in inventory and other resources into cash receipts from customers.
The pattern of the cash conversion cycle shows some seasonality, with variations in different quarters. The company experienced the shortest cash conversion cycle of 70.38 days in the first quarter of 2020, while it peaked at 90.92 days in the fourth quarter of 2020.
A lower cash conversion cycle is generally preferred as it signifies that the company is efficient in managing its working capital. Conversely, a longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers.
Standex International Corporation should focus on optimizing its inventory management, streamlining its accounts receivable process, and negotiating favorable payment terms with suppliers to potentially reduce its cash conversion cycle and improve its overall working capital management.
Peer comparison
Jun 30, 2024