Avnet Inc (AVT)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.44 | 95.09 | 85.41 | 72.57 | 68.32 |
| Days of sales outstanding (DSO) | days | 71.15 | 67.47 | 65.52 | 64.58 | 66.82 |
| Number of days of payables | days | 64.24 | 58.17 | 52.73 | 58.68 | 50.68 |
| Cash conversion cycle | days | 103.35 | 104.39 | 98.21 | 78.47 | 84.45 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.44 + 71.15 – 64.24
= 103.35
The analysis of Avnet Inc’s cash conversion cycle (CCC) over the period from June 30, 2021, to June 30, 2025, reveals several trends and insights about the company's operational efficiency and working capital management.
In June 2021, the CCC was recorded at approximately 84.45 days. This figure decreased slightly in June 2022 to around 78.47 days, indicating an improvement in the company's ability to convert its investments in inventory and receivables into cash more rapidly. This reduction suggests enhanced efficiency in managing inventory turnover and accounts receivable collections during this time.
However, from June 2022 onward, the CCC experienced an upward trend. By June 2023, it had increased to approximately 98.21 days, representing a notable elongation of the cycle. This increase may suggest a slowdown in inventory turnover or longer receivables collection periods, potentially impacting the company's liquidity and working capital requirements.
The upward trajectory continued into the subsequent years, with the CCC reaching around 104.39 days by June 2024. The sustained increase indicates a further deterioration in operational efficiency or strategic decisions that may have extended the period between inventory purchase and cash collection. The company’s CCC remained relatively stable at approximately 103.35 days as of June 2025, signaling that the elongation observed persisted through the period analyzed.
Overall, the data demonstrates a pattern of initial improvement followed by a consistent elongation of the cash conversion cycle, suggesting that Avnet Inc faced increasing challenges in managing its working capital effectively over the recent years. This trend warrants ongoing monitoring, as a prolonged CCC can impact liquidity and may require strategic adjustments to optimize cash flow management.
Peer comparison
Jun 30, 2025