Albertsons Companies (ACI)
Cash conversion cycle
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 31.06 | 32.48 | 31.98 | 30.03 | 31.81 | 33.04 | 32.41 | 31.09 | 31.02 | 33.25 | 31.88 | 31.58 | 32.11 | 34.11 | 31.14 | 32.23 | 31.86 | 34.49 | 32.25 | 32.93 |
| Days of sales outstanding (DSO) | days | 3.79 | 4.24 | 4.11 | 3.72 | 3.34 | 3.82 | 3.29 | 3.19 | 3.23 | 3.35 | 3.16 | 2.79 | 2.85 | 3.15 | 2.88 | 3.31 | 2.89 | 2.89 | 2.93 | 2.91 |
| Number of days of payables | days | 25.48 | 25.46 | 26.77 | 24.80 | 27.14 | 26.30 | 26.64 | 25.75 | 27.07 | 26.17 | 26.98 | 27.42 | 30.22 | 29.70 | 26.49 | 25.55 | 25.83 | 25.25 | 25.62 | 26.21 |
| Cash conversion cycle | days | 9.37 | 11.27 | 9.32 | 8.95 | 8.01 | 10.56 | 9.06 | 8.52 | 7.18 | 10.44 | 8.05 | 6.95 | 4.73 | 7.57 | 7.54 | 9.99 | 8.91 | 12.14 | 9.57 | 9.63 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.06 + 3.79 – 25.48
= 9.37
The analysis of Albertsons Companies' cash conversion cycle (CCC) over the period from May 2020 to February 2025 reveals a generally stable pattern with some fluctuations. The data indicates that the CCC has predominantly remained within a relatively narrow range of approximately 4.73 to 12.14 days.
Initially, the CCC was around 9.63 days in May 2020, which slightly decreased to approximately 9.57 days by August 2020. A notable increase occurred by November 2020, reaching 12.14 days, indicating a period where the company took longer to convert investments into cash. Subsequently, the cycle reverted to a shorter duration of about 8.91 days in February 2021.
Throughout 2021, the CCC demonstrated slight variations, with a low of around 7.54 days in August and November, and a modest increase to nearly 9.99 days in May 2021. The cycle further contracted to approximately 4.73 days in February 2022, signaling improved operational efficiency during that period.
From mid-2022 onwards, the CCC generally fluctuated between roughly 6.95 days and 10.44 days, with a low of 4.73 days in February 2022 and a high of 10.44 days in November 2022. The data then indicates a gradual increase again, reaching approximately 8.01 days in February 2023 and hovering around 8.52 to 9.32 days through the periods ending in May, August, and November 2024, respectively.
Overall, the cash conversion cycle of Albertsons Companies exhibits a trend of relative stability, with periodic short-term fluctuations that could be attributable to seasonal inventory adjustments, changes in supplier terms, or shifts in operational efficiencies. The persistent cyclical pattern suggests effective management of working capital, with no indications of systemic deterioration in cash conversion performance during the analyzed period.
Peer comparison
Feb 28, 2025