Taylor Morn Home (TMHC)
Cash conversion cycle
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 264.54 | 270.86 | 280.45 | 266.08 | 251.65 | 231.51 | 216.32 | 219.98 | 217.27 | 225.84 | 233.30 | 236.60 | 243.15 | 286.66 | 290.30 | 299.28 | 285.23 | 290.65 | 332.23 | 355.31 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 264.54 | 270.86 | 280.45 | 266.08 | 251.65 | 231.51 | 216.32 | 219.98 | 217.27 | 225.84 | 233.30 | 236.60 | 243.15 | 286.66 | 290.30 | 299.28 | 285.23 | 290.65 | 332.23 | 355.31 |
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 exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The trend for Taylor Morn Home's cash conversion cycle shows a general improvement in efficiency over the years. The cycle decreased from 355.31 days on March 31, 2020, to 264.54 days on December 31, 2024. This downward trend indicates that the company has been more effective in managing its working capital and converting it into cash.
There are fluctuations within the trend line, with some periods showing slight increases in the cash conversion cycle. For example, there was an increase in the cycle from March 31, 2023 to June 30, 2023, followed by a decrease in the subsequent period. These fluctuations suggest potential changes in the company's operations or market conditions that impacted the efficiency of cash conversion during these periods.
Overall, the decreasing trend in Taylor Morn Home's cash conversion cycle indicates improved operational efficiency and potentially better management of inventory, receivables, and payables. This trend is a positive signal for the company's financial health and suggests a more effective management of working capital over the analyzed period.
Peer comparison
Dec 31, 2024