Academy Sports Outdoors Inc (ASO)
Cash conversion cycle
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 79.40 | 84.35 | 72.92 | 68.58 |
| Days of sales outstanding (DSO) | days | 1.16 | 0.95 | 1.07 | 1.13 |
| Number of days of payables | days | 35.97 | 45.11 | 45.91 | 54.82 |
| Cash conversion cycle | days | 44.58 | 40.19 | 28.08 | 14.89 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 79.40 + 1.16 – 35.97
= 44.58
The cash conversion cycle of Academy Sports Outdoors Inc has shown an increasing trend over the past four years. On February 3, 2024, the company's cash conversion cycle was 44.58 days, which is higher compared to the previous years. This indicates that it takes Academy Sports Outdoors Inc longer to convert its inventory into cash.
The cash conversion cycle was 40.19 days on January 28, 2023, showing a slight increase from the previous year. On January 29, 2022, the cash conversion cycle was 28.08 days, which was a noticeable improvement from the previous year. However, on January 30, 2021, the company had the lowest cash conversion cycle of 14.89 days, indicating that Academy Sports Outdoors Inc was able to convert its inventory into cash more efficiently in that period.
Overall, the increasing trend in the cash conversion cycle suggests that Academy Sports Outdoors Inc may be facing challenges in managing its working capital efficiently, which could impact its liquidity and profitability in the long run. Companies often aim to shorten their cash conversion cycle to improve their operational efficiency and financial health.
Peer comparison
Feb 3, 2024