Academy Sports Outdoors Inc (ASO)
Cash conversion cycle
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 79.40 | 100.16 | 87.01 | 91.19 | 84.35 | 97.17 | 83.84 | 83.51 | 72.92 | 84.74 | 72.65 | |||
| Days of sales outstanding (DSO) | days | 1.15 | 1.06 | 0.86 | 0.61 | 0.95 | 0.91 | 0.81 | 0.70 | 1.07 | 0.69 | 0.63 | |||
| Number of days of payables | days | 35.98 | 55.07 | 44.52 | 46.87 | 45.11 | 54.62 | 50.00 | 52.07 | 45.91 | 58.74 | 53.19 | |||
| Cash conversion cycle | days | 44.58 | 46.16 | 43.35 | 44.93 | 40.18 | 43.46 | 34.65 | 32.14 | 28.07 | 26.69 | 20.08 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 79.40 + 1.15 – 35.98
= 44.58
The cash conversion cycle of Academy Sports Outdoors Inc has shown some fluctuations over the recent financial periods. It indicates the average number of days it takes for the company to convert its resources invested in inventory into cash collected from customers.
From January 2022 to July 2023, the cash conversion cycle fluctuated around 40 to 45 days, with a peak of 46.16 days in October 2023. This suggests that the company took slightly longer to convert its inventory into cash during this period.
From October 2021 to May 2021, there was a general decreasing trend in the cash conversion cycle, indicating that the company was able to manage its inventory, receivables, and payables more efficiently during this time. In January 2022, the cash conversion cycle reached its lowest point of 20.08 days, demonstrating the company's effective management of its working capital.
Overall, a lower cash conversion cycle is generally favorable as it shows that the company is efficient in managing its working capital and resources. However, fluctuations in the cash conversion cycle can indicate changes in the company's operational efficiency or market conditions that may warrant further investigation.
Peer comparison
Feb 3, 2024