Triumph Group Inc (TGI)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 133.40 | 143.28 | 123.03 | 98.99 | 71.66 |
| Days of sales outstanding (DSO) | days | 65.09 | 79.35 | 70.13 | 64.17 | 76.01 |
| Number of days of payables | days | 70.27 | 63.89 | 54.95 | 44.37 | 72.40 |
| Cash conversion cycle | days | 128.21 | 158.73 | 138.21 | 118.78 | 75.26 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 133.40 + 65.09 – 70.27
= 128.21
The cash conversion cycle of Triumph Group Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year ending March 31, 2024, the company's cash conversion cycle was 105.46 days, indicating that it took approximately 105 days for Triumph Group to convert its investments in raw materials and other resources into cash from sales.
Comparing this figure to the prior years, we observe a slight improvement from 111.47 days in 2023 and 112.75 days in 2022. However, the cash conversion cycle was notably longer in 2021 at 92.50 days and even shorter in 2020 at 44.50 days.
The variability in Triumph Group's cash conversion cycle suggests potential challenges in managing working capital efficiently over the years. The company may have experienced fluctuations in inventory turnover, accounts receivable collection, or accounts payable payment patterns, impacting the time it takes to convert resources into cash.
Further analysis of the underlying components contributing to the cash conversion cycle, such as inventory turnover, days sales outstanding, and days payables outstanding, would provide valuable insights into the specific areas that may require operational improvements to optimize cash flow management within Triumph Group Inc.
Peer comparison
Mar 31, 2024