Calculate and discus show Blackmore's’ cash conversion cycle has changed from 2018 and 2019. What is the cause of this change? Do we need any additional comparison data to make our analysis more complete? (provide one references)

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Group and Divisional Results Operating Review Financial Review Group Risks Group Financial Position Despite a chalanging your for the Gimus impacted by China regulatory charges, the nancial health of Blackmans remains sound at the end of the 2019 financial year Total retas increased by $14 milion to $208 millon June 2019, largely driven by increases in non-current assets and partially offset by increased debt levels reflecong higher working capita requirements to support our growth prorbes, 5 Current assets increased by $3 milion in the year. driven by inventory and partially offset by lower cach levels for the Group Invernary at $125 million was $21 milion higher than the prior year due to the building of safety stock levels in advance of taking ownership of the Catale Braside manufacturing ality (in October 2019, risk migwinni steps taken to ensure continuity of supply and a slowing of demend in Chine sales in the second-half of the yea Non-current assets increased by $23 milion to $185 milion at your end. This reflects the continued investment in our IT systems and the acquisition of the Impromy weight management brand in November 2018 Current labilities have decreased by $24 milonta $151 million, largely due to the timing of inventary purchasing cycles which wam nationally lower compared to the prior year Non-cunere lahlties $133 milionine mased by $36 milian am Jure 2018, driven by increased borrowings to fund higher working cacits requirements and the Impromy acquisition. Net debt ar 594 million increased by $45 million, higher than the increase in gross borrowings due to the lower cash postion. The cash balance of $25 milion was $12 milion lower than prior year following the successful reparation of cash from China during the second-half of the 2019 financial year The gearing ratio his increased from 20% to 31% in the year but rensins se modest lesk and we continue to maintains conserverive level of headroom against all det covenants During the 2019 year we undertook a refinancing of our debt facilities and secured an increase to our facilities (now a: $305 million, up from $230 milion) added new banking partners as well as improved margins and torms which wil provide the business with greater flexibility to fund future growth With highar grass deby, the Cimoups nat iarast rower decreased to 16.1 times, down from 25.9 times Notwithstanding the decrease these levels still maintain conservative levels given the Group's ongoing imerest commitments Aaron Canning Cash gavanad from operations of $2 millon neprevarred a $38 milion decine on the prior year, largely attributable to higher working capital in the second-half Ne cash flows from operating activities were $20 milion, with interest and tax cash outflows broadly flat compared to the prior year. This also represerved a 538 milion decine on the prior year. The cash conversion ratio of 57% for the year was below our historical levels. Reported NPAT was $53 million (2017: 570 miliona 24% decrease on the pnor year. Adjusting for agnificant items relating to restructuring of $1.6 milion postax the underlying result was $55 miliona 21% decease Reported basic earrings par shara 81 dacmasad 24% to 3092 pes (2018. 406.4 cents The FPS adjusted for significant as we dowe 22% 3182 Dividends per share were 220 cents (2018: 305 cent reflecting a 71% payout ratio Investment returns on the metrics of return on assess and shareholders' equity at 17% and 26% respectively were impacted by profr. performance and higher working capital Income tax expense was lower, reflecting the decline in proft, with a Group effective tax rate of 29.3%, marginally higher than the prior year. The Group will issus a separate voluntary 2019 Taxation Disclosure report providing further details on the types and amount of tion paid by the Company Aron Canning Chief Financial Officer Operating & Financial Review REVENUE $610 million The Group delivered of 5510 $610 million across all divisions and brands. a 1% increase on the price your EBIT $83 million Earnings before interest and taxes of $83 million was down 19% compare the prior year NPAT¹ $55 million Net profita INPATI attributable to shareholders of Blackmores of $55 milion, down 21% on the prior year EPS¹ 318 cents Farmings per share IEPS) of 310 cents. was down 22% on the price your. DIVIDENDS PER SHARE 220 cents Dividends of 220 pents par are w 28% in comun to the prior year ..Am. im 4 4 A 18- 160 10 M 15 A 400 150 IM Te 15 16 17 % M W 45 RETURN ON SHAREHOLDERS QUITY RETURN ON ASSETS CASH CONVERSION RATIO GEARING 14 M DIVIDEND PAYOUT RATIO 2 HGHLIGHTS 3 CHAIR 4 YEAR IN REVIEW 5 STRATESIC P Group and Divisional Results Operating Review Financial Review Group Risks Group Financial Position Despite a chalanging your for the Gimus impacted by China regulatory charges, the nancial health of Blackmans remains sound at the end of the 2019 financial year Total retas increased by $14 milion to $208 millon June 2019, largely driven by increases in non-current assets and partially offset by increased debt levels reflecong higher working capita requirements to support our growth prorbes, 5 Current assets increased by $3 milion in the year. driven by inventory and partially offset by lower cach levels for the Group Invernary at $125 million was $21 milion higher than the prior year due to the building of safety stock levels in advance of taking ownership of the Catale Braside manufacturing ality (in October 2019, risk migwinni steps taken to ensure continuity of supply and a slowing of demend in Chine sales in the second-half of the yea Non-current assets increased by $23 milion to $185 milion at your end. This reflects the continued investment in our IT systems and the acquisition of the Impromy weight management brand in November 2018 Current labilities have decreased by $24 milonta $151 million, largely due to the timing of inventary purchasing cycles which wam nationally lower compared to the prior year Non-cunere lahlties $133 milionine mased by $36 milian am Jure 2018, driven by increased borrowings to fund higher working cacits requirements and the Impromy acquisition. Net debt ar 594 million increased by $45 million, higher than the increase in gross borrowings due to the lower cash postion. The cash balance of $25 milion was $12 milion lower than prior year following the successful reparation of cash from China during the second-half of the 2019 financial year The gearing ratio his increased from 20% to 31% in the year but rensins se modest lesk and we continue to maintains conserverive level of headroom against all det covenants During the 2019 year we undertook a refinancing of our debt facilities and secured an increase to our facilities (now a: $305 million, up from $230 milion) added new banking partners as well as improved margins and torms which wil provide the business with greater flexibility to fund future growth With highar grass deby, the Cimoups nat iarast rower decreased to 16.1 times, down from 25.9 times Notwithstanding the decrease these levels still maintain conservative levels given the Group's ongoing imerest commitments Aaron Canning Cash gavanad from operations of $2 millon neprevarred a $38 milion decine on the prior year, largely attributable to higher working capital in the second-half Ne cash flows from operating activities were $20 milion, with interest and tax cash outflows broadly flat compared to the prior year. This also represerved a 538 milion decine on the prior year. The cash conversion ratio of 57% for the year was below our historical levels. Reported NPAT was $53 million (2017: 570 miliona 24% decrease on the pnor year. Adjusting for agnificant items relating to restructuring of $1.6 milion postax the underlying result was $55 miliona 21% decease Reported basic earrings par shara 81 dacmasad 24% to 3092 pes (2018. 406.4 cents The FPS adjusted for significant as we dowe 22% 3182 Dividends per share were 220 cents (2018: 305 cent reflecting a 71% payout ratio Investment returns on the metrics of return on assess and shareholders' equity at 17% and 26% respectively were impacted by profr. performance and higher working capital Income tax expense was lower, reflecting the decline in proft, with a Group effective tax rate of 29.3%, marginally higher than the prior year. The Group will issus a separate voluntary 2019 Taxation Disclosure report providing further details on the types and amount of tion paid by the Company Aron Canning Chief Financial Officer Operating & Financial Review REVENUE $610 million The Group delivered of 5510 $610 million across all divisions and brands. a 1% increase on the price your EBIT $83 million Earnings before interest and taxes of $83 million was down 19% compare the prior year NPAT¹ $55 million Net profita INPATI attributable to shareholders of Blackmores of $55 milion, down 21% on the prior year EPS¹ 318 cents Farmings per share IEPS) of 310 cents. was down 22% on the price your. DIVIDENDS PER SHARE 220 cents Dividends of 220 pents par are w 28% in comun to the prior year ..Am. im 4 4 A 18- 160 10 M 15 A 400 150 IM Te 15 16 17 % M W 45 RETURN ON SHAREHOLDERS QUITY RETURN ON ASSETS CASH CONVERSION RATIO GEARING 14 M DIVIDEND PAYOUT RATIO 2 HGHLIGHTS 3 CHAIR 4 YEAR IN REVIEW 5 STRATESIC P

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To calculate Blackmores cash conversion cycle CCC we need to use the following formula CCC DIO DSO D... View the full answer