Apple Inc (AAPL)
Cash conversion cycle
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.29 | 9.92 | 11.36 | 11.48 | 10.12 | 7.26 | 8.13 | 8.22 | 9.00 | 10.22 | 8.36 | 8.81 | 9.06 | 7.82 | 7.69 | 6.58 | 8.09 | 8.32 | 7.02 | 10.52 |
| Days of sales outstanding (DSO) | days | 47.66 | 58.53 | 37.53 | — | 51.46 | 56.82 | 40.07 | 43.23 | 63.41 | 51.77 | 35.85 | 37.29 | 73.26 | 50.20 | 43.10 | 42.16 | 55.02 | 64.95 | 37.71 | 37.38 |
| Number of days of payables | days | 91.90 | 98.14 | 72.18 | 65.90 | 85.96 | 94.12 | 72.33 | 79.31 | 113.87 | 85.07 | 65.23 | 67.70 | 116.28 | 81.48 | 68.28 | 63.96 | 89.12 | 93.74 | 60.89 | 65.60 |
| Cash conversion cycle | days | -33.95 | -29.68 | -23.29 | -54.42 | -24.38 | -30.04 | -24.13 | -27.86 | -41.46 | -23.09 | -21.02 | -21.61 | -33.95 | -23.46 | -17.49 | -15.22 | -26.01 | -20.47 | -16.16 | -17.70 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.29 + 47.66 – 91.90
= -33.95
The cash conversion cycle of Apple Inc has fluctuated over the past few quarters, ranging from -54.42 days to -15.22 days. A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers and converts inventory into sales quickly.
In general, Apple Inc has been efficient in managing its cash conversion cycle, with shorter timeframes reflecting a more efficient operation. The company has demonstrated consistent improvement in its cash conversion cycle, reaching a low of -54.42 days in March 2023 but rebounding to -15.22 days in March 2020.
This trend suggests that Apple Inc has been successful in effectively managing its cash flows, inventory levels, and accounts receivable/payable, which are all important components contributing to its overall financial health and operational efficiency. Maintaining a negative cash conversion cycle indicates that the company is operating efficiently and has a strong working capital management system in place.
Peer comparison
Dec 31, 2023