Tidewater Inc (TDW)

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	9.81	9.88	13.95	12.97	11.70	13.04	17.95	13.12	14.91	10.33	9.94	10.82	12.54	11.30	10.75	11.88	13.58	15.94	16.63	16.64
Days of sales outstanding (DSO)	days	—	—	1.25	—	—	—	—	—	—	8.27	—	75.88	73.55	68.14	68.16	56.01	51.96	96.30	97.30	95.26
Number of days of payables	days	22.15	20.65	19.62	26.97	36.32	34.54	22.68	20.12	21.50	18.47	16.39	14.63	13.18	10.54	11.50	8.64	11.29	22.31	20.93	18.49
Cash conversion cycle	days	-12.34	-10.77	-4.42	-14.01	-24.62	-21.50	-4.73	-6.99	-6.59	0.13	-6.45	72.06	72.91	68.90	67.41	59.25	54.25	89.93	93.00	93.41

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 9.81 + — – 22.15
= -12.34

The cash conversion cycle of Tidewater Inc has fluctuated over the past few quarters, indicating changes in its efficiency in managing its working capital. A negative cash conversion cycle implies that the company is able to generate cash from its operational activities before having to pay its suppliers.

In the most recent quarter, Tidewater Inc has shown an improvement in its cash conversion cycle, with a decrease to -12.34 days compared to the previous quarter, indicating that the company is managing its cash flow more effectively. This may be attributed to improved inventory management and faster collection of receivables.

However, the company experienced a significant increase in its cash conversion cycle in the two preceding quarters, reaching 72.06 days and 72.91 days, respectively. This suggests that Tidewater Inc faced challenges in converting its investments in inventory and receivables into cash, which could potentially impact its liquidity and working capital management.

Overall, Tidewater Inc should continue to monitor and improve its cash conversion cycle to ensure efficient utilization of its resources and to maintain a healthy cash position for its operations.