AeroVironment Inc (AVAV)
Cash conversion cycle
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.98 | 71.06 | 77.38 | 85.94 | 60.11 |
| Days of sales outstanding (DSO) | days | 137.70 | 131.09 | 125.28 | 112.11 | 127.34 |
| Number of days of payables | days | 31.19 | 16.05 | 16.43 | 29.80 | 26.21 |
| Cash conversion cycle | days | 203.49 | 186.09 | 186.23 | 168.25 | 161.23 |
April 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.98 + 137.70 – 31.19
= 203.49
The cash conversion cycle of AeroVironment Inc has shown a fluctuating trend over the past five years.
In April 2024, the cash conversion cycle was 203.49 days, increasing from the previous year's level of 186.09 days in April 2023. This indicates that the company took longer to convert its investments in inventory and other resources into cash during this period.
Comparing the current cycle to two years ago, there has been an increase in the cash conversion cycle from 186.23 days in April 2022 to 203.49 days in April 2024. This suggests a potential slowdown in the efficiency of AeroVironment's operational processes in converting its resources into cash.
However, when looking back at the data from April 2020, the company has shown an improvement in its cash conversion cycle. The cycle decreased from 161.23 days in April 2020 to 203.49 days in April 2024, indicating that AeroVironment was able to more effectively manage its working capital and convert resources into cash more efficiently during the earlier period.
Overall, the trend in the cash conversion cycle of AeroVironment Inc suggests variations in the company's ability to manage its working capital over the years, with fluctuations in the efficiency of converting investments in resources into cash. Further analysis would be required to understand the factors driving these changes and their implications for the company's financial performance.
Peer comparison
Apr 30, 2024