Academy Sports Outdoors Inc (ASO)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 120.92 | 126.12 | 104.88 | 105.80 | 87.09 | 98.50 | 119.24 | 119.20 | 104.65 | 101.23 | 103.38 | 102.23 | 93.57 | 94.64 | 112.94 | 113.53 | 100.93 | 91.37 | 100.40 | 81.57 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 1.11 | — | — | 1.09 | — | 0.88 | — | 0.60 | — | 0.94 | — | 0.93 | — | 0.78 | — | — |
| Number of days of payables | days | — | — | — | — | 39.46 | — | — | 65.54 | — | 51.80 | — | 52.55 | — | 50.62 | — | 63.81 | — | 54.49 | — | — |
| Cash conversion cycle | days | 120.92 | 126.12 | 104.88 | 105.80 | 48.74 | 98.50 | 119.24 | 54.75 | 104.65 | 50.31 | 103.38 | 50.28 | 93.57 | 44.96 | 112.94 | 50.64 | 100.93 | 37.66 | 100.40 | 81.57 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 120.92 + — – —
= 120.92
The cash conversion cycle of Academy Sports Outdoors Inc has shown some fluctuations over the periods provided. Typically, a shorter cash conversion cycle is desirable as it indicates that the company is able to more quickly convert its inventory into sales and then into cash.
From the data provided, we observed that the cash conversion cycle was 81.57 days as of January 31, 2022. This number increased to 100.40 days by April 30, 2022, which indicates a slower conversion of inventory and sales into cash during that period. However, July 30, 2022, saw a significant improvement with the cash conversion cycle decreasing to 37.66 days, suggesting efficient management of working capital.
The cycle increased again to 100.93 days by July 31, 2022, before reducing to 50.64 days by October 29, 2022. However, by the end of October 2022, the cycle extended to 112.94 days, indicating a longer time taken to convert investments in resources into cash flows. This pattern of fluctuations continued over the subsequent quarters with varying levels of efficiency in converting resources to cash.
Overall, the cash conversion cycle trend for Academy Sports Outdoors Inc shows some variability, which may be influenced by various factors such as inventory management, sales volume, and collection policies. It is important for the company to continuously monitor and improve its cash conversion cycle to ensure optimal utilization of resources and efficient cash flow management.
Peer comparison
Jan 31, 2025