Triumph Group Inc (TGI)
Cash conversion cycle
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 210.23 | 162.60 | 164.66 | 139.06 | 118.91 | 130.11 | 156.47 | 163.27 | 143.28 | 145.39 | 145.66 | 131.85 | 123.03 | 125.45 | 112.69 | 109.46 | 98.99 | 97.33 | 90.49 | 80.46 |
| Days of sales outstanding (DSO) | days | 62.36 | 66.11 | 74.36 | 62.56 | 58.57 | 58.24 | 71.34 | 72.98 | 79.35 | 76.60 | 74.79 | 68.60 | 70.13 | 73.38 | 72.18 | 68.89 | 64.17 | 56.77 | 65.61 | 63.12 |
| Number of days of payables | days | 95.85 | 50.60 | 60.86 | 49.69 | 62.64 | 49.34 | 55.82 | 58.14 | 62.53 | 60.45 | 56.57 | 46.06 | 54.95 | 53.70 | 41.43 | 43.70 | 44.37 | 42.60 | 47.11 | 51.55 |
| Cash conversion cycle | days | 176.74 | 178.12 | 178.16 | 151.93 | 114.83 | 139.01 | 171.99 | 178.11 | 160.09 | 161.54 | 163.88 | 154.38 | 138.21 | 145.12 | 143.45 | 134.64 | 118.78 | 111.50 | 109.00 | 92.03 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 210.23 + 62.36 – 95.85
= 176.74
The cash conversion cycle of Triumph Group Inc has fluctuated over the periods indicated. It represents the time it takes for the company to convert its investment in inventory back into cash. A shorter cycle indicates better efficiency in managing inventory, accounts receivable, and accounts payable.
On June 30, 2020, the cash conversion cycle was 92.03 days, which increased to 178.16 days on September 30, 2024. The cycle then decreased to 0.00 days on March 31, 2025, which may be due to a specific event like a divestiture or a change in business operations that resulted in the elimination of the cycle.
Overall, Triumph Group Inc should strive to maintain a reasonable cash conversion cycle to ensure efficient management of its working capital components and optimize its cash flow. Further analysis of the underlying factors driving these fluctuations would be necessary to provide actionable insights for the company's management.
Peer comparison
Mar 31, 2025