Triumph Group Inc (TGI)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 150.98 | 133.40 | 143.28 | 123.03 | 98.99 |
| Days of sales outstanding (DSO) | days | 43.69 | 65.09 | 79.35 | 70.13 | 64.17 |
| Number of days of payables | days | 68.84 | 70.27 | 63.89 | 54.95 | 44.37 |
| Cash conversion cycle | days | 125.83 | 128.21 | 158.73 | 138.21 | 118.78 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 150.98 + 43.69 – 68.84
= 125.83
The cash conversion cycle of Triumph Group Inc has shown fluctuations over the past five years. In March 2021, the cash conversion cycle was 118.78 days, indicating that the company takes approximately 118.78 days to convert its investments in inventory and other resources back into cash.
However, the cash conversion cycle increased to 138.21 days by March 2022, reflecting a slower conversion of investments into cash. This trend continued in March 2023, with the cash conversion cycle lengthening to 158.73 days, indicating potential inefficiencies in managing inventory, accounts receivable, and accounts payable.
There was a notable improvement in the cash conversion cycle by March 2024, where it decreased to 128.21 days, suggesting the company streamlined its processes to convert investments into cash more efficiently. By March 2025, the cash conversion cycle further decreased to 125.83 days, signaling ongoing efforts to enhance working capital management.
Overall, the fluctuation in Triumph Group Inc's cash conversion cycle indicates variations in inventory management, accounts receivable collection, and payment of accounts payable. The company should focus on optimizing these processes to shorten the cash conversion cycle, improving cash flow and overall financial performance.
Peer comparison
Mar 31, 2025