Worthington Industries Inc (WOR)
Cash conversion cycle
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.54 | 52.18 | 61.20 | 81.40 | 56.53 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 62.54 | 52.18 | 61.20 | 81.40 | 56.53 |
May 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.54 + — – —
= 62.54
The cash conversion cycle of Worthington Industries Inc has shown some fluctuations over the past five years.
As of May 31, 2020, the cash conversion cycle stood at 56.53 days. It then increased to 81.40 days by May 31, 2021, indicating a prolonged period between the company's cash outflows for purchasing raw materials and the collection of cash from the sale of its products.
Subsequently, by May 31, 2022, the cash conversion cycle improved to 61.20 days, suggesting a more efficient management of working capital and quicker conversion of inventory and receivables into cash. However, in the following year, the cycle decreased further to 52.18 days by May 31, 2023, reflecting an even more streamlined process.
Finally, as of May 31, 2024, the cash conversion cycle increased slightly to 62.54 days, indicating a potential lengthening of the cash conversion process compared to the previous year.
Overall, Worthington Industries Inc's cash conversion cycle has shown variability over the years, with efforts to manage working capital and improve operational efficiency being evident in certain periods. Monitoring this metric can provide insights into the company's liquidity position and operating effectiveness.
Peer comparison
May 31, 2024