Apogee Enterprises Inc (APOG)
Cash conversion cycle
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Nov 30, 2023 | Nov 25, 2023 | Aug 31, 2023 | Aug 26, 2023 | May 31, 2023 | May 27, 2023 | Feb 28, 2023 | Feb 25, 2023 | Nov 30, 2022 | Nov 26, 2022 | Aug 31, 2022 | Aug 27, 2022 | May 31, 2022 | May 28, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 33.65 | 32.65 | 26.27 | 26.47 | 21.43 | 23.33 | 22.84 | 22.45 | 22.72 | 22.57 | 24.86 | 24.60 | 23.87 | 23.45 | 25.29 | 25.50 | 29.27 | 30.59 | 29.98 | 30.02 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 34.76 | — | — | 34.48 | — | 35.21 | — | 42.02 | — | 38.49 | — | 36.85 | — | 39.55 | — | 41.49 |
| Number of days of payables | days | — | — | — | — | 26.23 | — | — | 26.56 | — | 24.29 | — | 23.70 | — | 25.88 | — | 20.79 | — | 27.11 | — | 27.09 |
| Cash conversion cycle | days | 33.65 | 32.65 | 26.27 | 26.47 | 29.96 | 23.33 | 22.84 | 30.38 | 22.72 | 33.49 | 24.86 | 42.92 | 23.87 | 36.07 | 25.29 | 41.56 | 29.27 | 43.03 | 29.98 | 44.42 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 33.65 + — – —
= 33.65
The cash conversion cycle of Apogee Enterprises Inc fluctuated over the periods analyzed, indicating changes in the efficiency of its cash management. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales, then back into cash through collection.
In the most recent period, as of February 28, 2025, the cash conversion cycle was observed to be 33.65 days. This suggests that it takes Apogee Enterprises approximately 33.65 days to convert its investments in inventory and other resources into cash generated from sales and subsequently collected.
Looking at trends, the company seemed to have successfully reduced its cash conversion cycle over the periods analyzed, which reflects a more efficient use of its resources in generating cash flow from its operational activities. Specifically, there was a notable decrease in the cash conversion cycle from May 28, 2022, to February 28, 2025, indicating an improvement in the company's working capital management efficiency.
Overall, a lower cash conversion cycle is generally preferred as it indicates that the company is able to quickly recover its cash flow from its operational cycle, thereby minimizing the need for external financing and enhancing its overall liquidity position. However, it's essential to consider industry benchmarks and the company's specific circumstances when evaluating the significance of the cash conversion cycle.