Woodward Inc (WWD)

Cash conversion cycle

		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	Dec 31, 2019
Days of inventory on hand (DOH)	days	79.60	82.43	78.64	76.90	73.94	79.11	89.36	96.47	89.52	90.72	89.78	84.39	79.37	82.05	81.05	81.43	73.56	107.09	103.66	98.58
Days of sales outstanding (DSO)	days	52.82	56.10	65.10	59.57	63.61	64.76	63.33	52.33	57.99	53.54	55.63	45.13	55.09	65.66	69.26	55.21	57.02	50.33	54.93	46.67
Number of days of payables	days	37.57	34.23	35.05	34.82	33.46	33.19	34.68	36.88	40.12	35.19	34.91	30.98	32.30	31.33	31.23	28.99	22.55	34.06	42.71	41.40
Cash conversion cycle	days	94.85	104.29	108.69	101.65	104.09	110.69	118.00	111.92	107.39	109.06	110.50	98.53	102.16	116.37	119.08	107.66	108.03	123.36	115.89	103.85

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 79.60 + 52.82 – 37.57
= 94.85

Woodward Inc's cash conversion cycle has shown some fluctuations over the past few quarters. The cash conversion cycle represents the time it takes for a company to convert its investment in inventory and other inputs into cash inflows from sales.

In the most recent quarter, ending September 30, 2024, Woodward Inc's cash conversion cycle was 94.85 days. This indicates that it takes the company approximately 94.85 days to sell inventory and collect cash from customers.

The trend in Woodward Inc's cash conversion cycle over the past few quarters has shown some variation, with the cycle ranging from a low of 94.85 days to a high of 119.08 days. Generally, a shorter cash conversion cycle is preferable as it indicates that the company is efficiently managing its working capital.

Further analysis of the components of the cash conversion cycle, including the days inventory outstanding, days sales outstanding, and days payable outstanding, would provide more insights into Woodward Inc's working capital management and efficiency in converting its assets into cash.