Autodesk Inc (ADSK)

Cash conversion cycle

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	58.17	70.08	59.59	61.93	72.71
Number of days of payables	days	71.43	77.56	105.66	132.68	94.03
Cash conversion cycle	days	-13.26	-7.48	-46.06	-70.74	-21.32

January 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 58.17 – 71.43
= -13.26

The cash conversion cycle of Autodesk Inc has shown significant fluctuations over the past five years. In January 2024, the company's cash conversion cycle stood at -13.26 days, indicating that Autodesk was able to convert its inventory and accounts receivable into cash quickly during that period. This represents an improvement compared to the previous year, when the cash conversion cycle was at -7.48 days.

In contrast, in January 2023 and 2022, the company had negative cash conversion cycles of -46.06 days and -70.74 days, respectively. This suggests that Autodesk was exceptionally efficient in managing its working capital during those years, with a shorter cash conversion cycle resulting in faster cash flows.

However, in January 2021, the cash conversion cycle deteriorated to -21.32 days, indicating a potential slowdown in cash being generated from Autodesk's operating cycle. It is important to note that despite the fluctuations in the cash conversion cycle, the company has generally maintained a negative cash conversion cycle, which signifies strong liquidity and efficient working capital management.

Overall, the analysis of Autodesk Inc's cash conversion cycle highlights the company's ability to efficiently manage its working capital and convert its assets into cash, although there have been fluctuations in performance over the years.