Triumph Group Inc (TGI)
Cash conversion cycle
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 119.84 | 130.11 | 164.63 | 172.27 | 119.84 | 153.03 | 145.66 | 131.85 | 123.03 | 125.45 | 112.69 | 109.46 | 98.99 | 97.33 | 90.49 | 80.46 | 71.65 | 69.50 | 61.93 | 61.25 |
| Days of sales outstanding (DSO) | days | 42.34 | 40.15 | 53.01 | 49.98 | 45.80 | 50.16 | 47.48 | 43.43 | 44.67 | 37.65 | 38.84 | 39.19 | 37.88 | 29.20 | 35.94 | 35.18 | 45.24 | 35.68 | 39.30 | 37.09 |
| Number of days of payables | days | 63.13 | 49.34 | 58.73 | 61.35 | 67.30 | 63.62 | 56.57 | 46.06 | 54.95 | 53.70 | 41.43 | 43.70 | 44.37 | 42.60 | 47.11 | 51.55 | 72.40 | 55.73 | 57.06 | 55.54 |
| Cash conversion cycle | days | 99.05 | 120.92 | 158.91 | 160.91 | 98.34 | 139.56 | 136.57 | 129.22 | 112.75 | 109.40 | 110.11 | 104.95 | 92.50 | 83.93 | 79.32 | 64.09 | 44.50 | 49.45 | 44.16 | 42.80 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 119.84 + 42.34 – 63.13
= 99.05
The cash conversion cycle of Triumph Group Inc has shown fluctuations over the past few quarters. The company's cash conversion cycle fluctuated between 44.50 days to 160.91 days in the last two years. The cash conversion cycle indicates the time it takes for a company to convert its resources and investments into cash flows from sales. A longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying payables, resulting in tying up cash for longer periods.
The company's cash conversion cycle reached a peak of 160.91 days in September 2023, indicating a prolonged period between purchasing inventory and receiving cash from sales. This could be a concerning trend as it may lead to cash flow challenges and strain on working capital management.
On the other hand, the company showed improvement in its cash conversion cycle in the most recent quarter, with a cycle of 99.05 days as of March 31, 2024. This improvement suggests that the company may have streamlined its operations in terms of inventory management, accounts receivable collection, or payment of accounts payables.
Overall, Triumph Group Inc needs to focus on maintaining a shorter cash conversion cycle to enhance its liquidity position and efficiency in managing working capital. Keeping this metric under control is essential for ensuring the company's financial health and sustainable growth in the long run.
Peer comparison
Mar 31, 2024