Agilysys Inc (AGYS)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	—	17.96	46.18	41.46	8.99
Days of sales outstanding (DSO)	days	—	48.77	45.37	60.25	74.76
Number of days of payables	days	—	36.90	44.50	58.34	48.46
Cash conversion cycle	days	0.00	29.83	47.05	43.36	35.29

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle of Agilysys Inc has shown fluctuating trends over the past five years. As of March 31, 2021, the company's cash conversion cycle stood at 35.29 days, indicating that it took approximately 35.29 days for Agilysys to convert its investments in inventory and other resources into cash flows from sales.

However, by March 31, 2023, the cash conversion cycle had increased to 47.05 days, suggesting a lengthening period for the company to convert its resources into cash. This trend may indicate potential inefficiencies in managing inventory, accounts receivable, and accounts payable.

Interestingly, by March 31, 2024, Agilysys managed to significantly decrease its cash conversion cycle to 29.83 days, indicating improved efficiency in converting its resources into cash flows. Furthermore, as of March 31, 2025, the cash conversion cycle reached 0.00 days, which could imply that Agilysys was able to achieve immediate conversion of investments into cash, representing an optimal cash management scenario.

Overall, Agilysys Inc's cash conversion cycle has demonstrated variable performance over the years, highlighting the company's ability to efficiently manage its working capital and financial operations. Continued monitoring and analysis of this metric will be crucial for evaluating Agilysys' operational efficiency and financial health in the future.