Agilysys Inc (AGYS)

Cash conversion cycle

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Days of inventory on hand (DOH)	days	7.51	11.55	13.15	15.62	19.08	20.64	20.18	15.83	15.87	6.74	3.86	2.57	2.64	2.51	4.03	4.74	6.42	5.32	2.84	4.61
Days of sales outstanding (DSO)	days	45.13	78.71	46.42	45.02	41.08	60.59	42.17	48.55	56.23	59.72	46.97	56.95	68.41	80.38	50.51	73.15	81.46	68.96	55.61	64.57
Number of days of payables	days	15.42	15.37	17.70	19.48	18.39	19.44	21.79	17.88	22.34	16.62	18.48	16.00	14.24	10.32	5.89	7.63	22.12	29.94	26.28	13.89
Cash conversion cycle	days	37.22	74.89	41.88	41.15	41.77	61.78	40.56	46.50	49.77	49.83	32.35	43.52	56.81	72.57	48.65	70.27	65.75	44.34	32.16	55.29

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.51 + 45.13 – 15.42
= 37.22

The cash conversion cycle of Agilysys Inc has shown fluctuations over the past few quarters. On March 31, 2024, the company's cash conversion cycle was 37.22 days, indicating that it took approximately 37 days for Agilysys to convert its investments in inventory and other resources into cash from sales. This represents an improvement compared to the previous quarter when the cycle was 74.89 days, suggesting better management of working capital.

Looking back at historical data, Agilysys' cash conversion cycle has had its ups and downs, with significant variations seen between quarters. It reached a peak of 72.57 days on December 31, 2020, and hit a low of 32.16 days on September 30, 2019. These fluctuations could be attributed to various factors such as changes in sales trends, inventory management efficiency, and payment terms with suppliers and customers.

Overall, the recent decrease in the cash conversion cycle could be a positive sign for Agilysys, indicating potential improvements in operational efficiency and liquidity management. However, it is essential for the company to continue monitoring and optimizing its cash conversion cycle to ensure sustainable financial performance and effective utilization of resources.