Analog Devices Inc (ADI)
Cash conversion cycle
| Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 88.45 | 83.35 | 83.63 | 84.72 | 87.38 | 90.88 | 86.87 | 81.29 | 72.70 | 54.12 | 55.11 | 56.64 | 94.52 | 71.25 | 70.62 | 69.27 | 69.34 | 69.34 | 66.84 | 66.18 |
| Days of sales outstanding (DSO) | days | 52.53 | 43.36 | 36.01 | 38.65 | 44.50 | 46.85 | 46.66 | 48.11 | 55.65 | 59.54 | 62.56 | 73.56 | 75.56 | 46.54 | — | 51.96 | 48.47 | — | — | — |
| Number of days of payables | days | 29.78 | 24.79 | 23.90 | 21.71 | 26.23 | 31.13 | 29.99 | 28.54 | 30.23 | 24.51 | 23.14 | 25.40 | 34.91 | 28.82 | 30.75 | 25.47 | 25.91 | 24.44 | 21.99 | 23.80 |
| Cash conversion cycle | days | 111.19 | 101.92 | 95.75 | 101.66 | 105.65 | 106.59 | 103.54 | 100.86 | 98.11 | 89.14 | 94.53 | 104.79 | 135.16 | 88.97 | 39.87 | 95.76 | 91.90 | 44.91 | 44.85 | 42.38 |
November 2, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.45 + 52.53 – 29.78
= 111.19
The cash conversion cycle of Analog Devices Inc has shown some fluctuations over the time periods provided. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
On average, the cash conversion cycle for Analog Devices Inc over the periods analyzed is approximately 92.96 days. This means that it takes the company approximately 92.96 days to sell its inventory, collect accounts receivable, and pay its accounts payable.
Analyzing the trend, we can observe that the cash conversion cycle has generally been within the range of 88 to 106 days, with some outliers such as in Jan 2021 and Oct 2021 with significantly higher values of 135.16 days and 111.19 days, respectively.
Shorter cash conversion cycles generally indicate that the company is efficient in managing its working capital and converting its investments into cash quickly. On the other hand, longer cash conversion cycles may suggest inefficiencies in inventory management, collections, or payment processes.
It is important for Analog Devices Inc to monitor and evaluate its cash conversion cycle regularly to ensure efficient working capital management and optimize its cash flow operations.
Peer comparison
Nov 2, 2024