Applied Materials Inc (AMAT)
Cash conversion cycle
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 138.57 | 120.15 | 147.85 | 128.39 | 156.99 |
| Days of sales outstanding (DSO) | days | — | 71.91 | — | 77.48 | — |
| Number of days of payables | days | — | 34.80 | — | 33.15 | — |
| Cash conversion cycle | days | 138.57 | 157.26 | 147.85 | 172.72 | 156.99 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 138.57 + — – —
= 138.57
The cash conversion cycle of Applied Materials Inc has shown some fluctuations over the years. As of October 31, 2022, the company's cash conversion cycle was 156.99 days. This figure increased to 172.72 days by October 29, 2023, indicating a longer time taken to convert investments in inventory and other resources into cash inflows.
However, there was a significant improvement by October 31, 2023, when the cash conversion cycle decreased to 147.85 days. This suggests that the company may have streamlined its operations to enhance efficiency in managing its working capital.
Subsequently, the cash conversion cycle slightly increased to 157.26 days by October 27, 2024, but then decreased notably to 138.57 days by October 31, 2024. Overall, despite some fluctuations, Applied Materials Inc has been able to manage its cash conversion cycle effectively, reflecting its ability to efficiently convert its resources into cash flows within a reasonable timeframe.
Peer comparison
Oct 31, 2024