Taylor Morn Home (TMHC)

Cash conversion cycle

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Days of inventory on hand (DOH) days 264.54 251.65 217.27 243.15 285.23
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 264.54 251.65 217.27 243.15 285.23

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 264.54 + — – —
= 264.54

The cash conversion cycle of Taylor Morn Home has shown fluctuations over the years as follows:
- On December 31, 2020, the cash conversion cycle was 285.23 days, indicating that it took the company around 285 days to convert its investments in inventory and accounts receivable into cash.
- By December 31, 2021, the cash conversion cycle improved to 243.15 days, suggesting a more efficient management of working capital.
- In the following year, on December 31, 2022, the cash conversion cycle further decreased to 217.27 days, showing an even more improved efficiency in the company's cash management practices.
- However, by December 31, 2023, there was a slight increase in the cash conversion cycle to 251.65 days, indicating a potential slowdown in the company's ability to convert its assets into cash.
- The pattern continued in the most recent year, with the cash conversion cycle standing at 264.54 days on December 31, 2024, reflecting a further increase from the previous year.
Overall, Taylor Morn Home's cash conversion cycle has displayed variability, with periods of improvement and slight setbacks, suggesting the need for ongoing monitoring and management of working capital to optimize cash flow efficiency.