Thor Industries Inc (THO)
Cash conversion cycle
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.85 | 58.72 | 65.40 | 62.37 | 57.26 | 59.64 | 52.99 | 48.14 | 43.33 | 43.37 | 44.94 | 48.15 | 43.81 | 52.64 | 54.54 | 46.80 | 33.56 | 40.54 | 39.34 | 42.29 |
| Days of sales outstanding (DSO) | days | 18.24 | 23.07 | 18.96 | 19.22 | 18.00 | 22.04 | 15.08 | 17.79 | 19.09 | 26.62 | 26.66 | 29.32 | 23.79 | 25.67 | 28.82 | 28.27 | 26.64 | 11.28 | 23.98 | 24.84 |
| Number of days of payables | days | 23.83 | 29.84 | 28.06 | 27.25 | 25.50 | 25.39 | 18.17 | 17.56 | 20.31 | 25.75 | 26.84 | 30.39 | 29.27 | 36.64 | 33.70 | 33.95 | 29.82 | 19.25 | 26.08 | 26.32 |
| Cash conversion cycle | days | 46.26 | 51.95 | 56.30 | 54.34 | 49.76 | 56.29 | 49.90 | 48.38 | 42.11 | 44.24 | 44.77 | 47.07 | 38.32 | 41.67 | 49.66 | 41.13 | 30.38 | 32.57 | 37.24 | 40.81 |
July 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.85 + 18.24 – 23.83
= 46.26
The cash conversion cycle of Thor Industries Inc has exhibited some fluctuations over the past few quarters. The cycle represents the time it takes for the company to convert its investments in inventory into cash received from sales.
From October 2019 to April 2020, the cash conversion cycle increased gradually, reaching its peak at 49.66 days in January 2021. Subsequently, the cycle decreased significantly to 30.38 days by October 2021, indicating more efficient management of working capital during this period.
However, the cycle increased again in the following quarters, peaking at 56.30 days in January 2024. This increase may signify delays in collecting receivables or possibly an accumulation of inventory. By July 2024, the cycle reduced to 46.26 days, suggesting some improvement in working capital efficiency.
Overall, Thor Industries Inc has experienced fluctuations in its cash conversion cycle, emphasizing the importance of closely monitoring working capital management to ensure timely conversion of investments into cash flow.
Peer comparison
Jul 31, 2024