Tidewater Inc (TDW)
Cash conversion cycle
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 14.28 | 11.31 | 10.86 | 11.04 | 15.73 | 15.02 | 13.93 | 15.65 | 21.70 | 16.05 | 18.35 | 12.65 | 12.15 | 13.04 | 15.10 | 15.38 | 14.90 | 15.87 | 17.73 | 18.34 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 14.28 | 11.31 | 10.86 | 11.04 | 15.73 | 15.02 | 13.93 | 15.65 | 21.70 | 16.05 | 18.35 | 12.65 | 12.15 | 13.04 | 15.10 | 15.38 | 14.90 | 15.87 | 17.73 | 18.34 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.28 + — – —
= 14.28
The cash conversion cycle of Tidewater Inc has shown fluctuations over the periods provided. The cash conversion cycle, a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, decreased from 18.34 days as of March 31, 2020, to 10.86 days as of June 30, 2024.
Overall, the company has managed to improve its cash conversion efficiency over the years, with the cycle peaking at 21.70 days on December 31, 2022, and reaching its lowest point on June 30, 2024. This improvement indicates that Tidewater Inc has become more effective in managing its working capital and operations, leading to quicker conversion of assets into cash.
However, there were some fluctuations in the cash conversion cycle in the interim periods, such as an increase from 12.65 days on March 31, 2022, to 18.35 days on June 30, 2022. These fluctuations may signify changes in the company's operational efficiencies or shifts in its inventory management practices.
Overall, a decreasing trend in the cash conversion cycle is viewed positively as it reflects the company's ability to generate cash and liquidity more efficiently. It is important for Tidewater Inc to continue monitoring and managing its cash conversion cycle to maintain stable and efficient operations in the future.
Peer comparison
Dec 31, 2024