Agilysys Inc (AGYS)

Cash conversion cycle

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	—	23.34	24.38	20.37	17.75	27.47	31.63	37.98	46.18	50.10	49.66	39.92	41.46	21.57	13.00	8.59	8.99	8.78	12.52	13.86
Days of sales outstanding (DSO)	days	—	73.80	51.83	45.95	48.77	82.13	52.09	49.22	45.37	65.65	49.82	54.43	60.25	63.67	51.51	62.19	74.76	87.51	56.69	79.56
Number of days of payables	days	60.76	42.88	48.21	38.77	36.47	36.56	42.55	47.37	44.50	47.21	53.61	45.09	58.34	53.23	62.24	53.51	48.46	36.11	18.29	22.29
Cash conversion cycle	days	-60.76	54.26	28.00	27.55	30.06	73.05	41.17	39.82	47.05	68.54	45.87	49.26	43.36	32.01	2.26	17.28	35.29	60.18	50.92	71.13

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 60.76
= -60.76

The cash conversion cycle (CCC) for Agilysys Inc has shown some fluctuations over the period from June 30, 2020, to March 31, 2025. The CCC represents the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

The CCC for Agilysys Inc started at 71.13 days on June 30, 2020, indicating a relatively long cycle. Over the next few quarters, the company managed to significantly reduce its CCC, reaching a low of -60.76 days on March 31, 2025. A negative CCC implies that the company is able to collect cash from customers before paying its suppliers, which is considered an efficient use of working capital.

During the observed period, Agilysys Inc experienced fluctuations in its CCC, with some quarters showing longer cycles (e.g., 73.05 days on December 31, 2023) and others showing shorter cycles (e.g., 2.26 days on September 30, 2021). These fluctuations may be attributed to changes in inventory management, accounts receivable collection, and accounts payable turnover.

Overall, a decreasing trend in the CCC over time, reaching negative values in certain periods, suggests that Agilysys Inc has been improving its efficiency in managing working capital and converting its resources into cash inflows more quickly. This improvement can contribute to the company's liquidity position and financial performance.