AeroVironment Inc (AVAV)
Cash conversion cycle
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 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 | 104.41 | 119.54 | 109.02 | 103.86 | 109.35 | 114.09 | 122.05 | 149.57 | 145.57 | 157.39 | 145.57 | 123.00 | 112.24 | 116.23 | 105.92 | 106.40 | 109.04 | 101.84 | 100.14 | 91.49 |
| Days of sales outstanding (DSO) | days | 181.61 | 152.81 | 133.31 | 122.81 | 131.13 | 104.27 | 109.36 | 121.37 | 120.42 | 108.96 | 112.18 | 124.55 | 127.12 | 134.18 | 110.49 | 105.45 | 117.59 | 120.02 | 135.37 | 136.69 |
| Number of days of payables | days | 52.51 | 39.40 | 31.72 | 31.48 | 35.17 | 19.07 | 20.40 | 23.73 | 23.09 | 25.86 | 23.92 | 27.78 | 23.54 | 24.38 | 25.39 | 25.50 | 24.27 | 22.67 | 21.26 | 15.43 |
| Cash conversion cycle | days | 233.51 | 232.96 | 210.61 | 195.19 | 205.31 | 199.29 | 211.01 | 247.21 | 242.91 | 240.48 | 233.83 | 219.77 | 215.81 | 226.03 | 191.03 | 186.35 | 202.36 | 199.19 | 214.25 | 212.74 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 104.41 + 181.61 – 52.51
= 233.51
The cash conversion cycle (CCC) of AeroVironment Inc. exhibits notable fluctuations over the specified periods, reflecting variations in the company's management of working capital components—namely days sales outstanding (DSO), days inventory outstanding (DIO), and days payable outstanding (DPO).
At the beginning of the observed timeframe, on January 31, 2022, the CCC stood at approximately 212.74 days. This cycle increased slightly throughout 2022, reaching around 214.25 days by April 30, 2022, and then decreasing to 199.19 days by July 30, 2022, indicating a modest improvement in liquidity management. However, the cycle increased again to approximately 202.36 days on July 31, 2022, and further decreased to roughly 186.35 days by October 29, 2022, suggesting an improved efficiency in converting investments into cash.
In early 2023, the cycle experienced a more significant rise, reaching approximately 226.03 days in late January. During this period, it slightly decreased to about 215.81 days by the end of January but then increased again through 2023, peaking at approximately 240.48 days in July and October 2023. This upward trend indicates a period where the company took longer to convert resources into cash, potentially reflecting extended receivables or inventory holding periods.
By the end of the observed period, on January 31, 2024, the CCC decreased to approximately 199.29 days, suggesting a partial recovery in operational efficiency. Throughout 2024, there was a slight increase and decrease, with the cycle fluctuating around 205 days in April and then decreasing again to approximately 195.19 days in July, maintaining an overall shorter cycle compared to the previous peak levels. Towards the end of 2024 and into early 2025, the CCC increased again, reaching about 233 days in January 2025 and remaining elevated at around 233.51 days in April 2025.
Overall, the data indicates that AeroVironment Inc.'s cash conversion cycle has experienced periods of both elongation and shortening, reflecting varying operational and financial management practices over time. The cyclical nature suggests responsiveness to external factors such as inventory management, receivables collection, and payment policies, with recent trends showing an inclination towards shorter cycles but still subject to significant variation.
Peer comparison
Apr 30, 2025