Avnet Inc (AVT)
Cash conversion cycle
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.44 | 97.59 | 96.01 | 100.45 | 95.09 | 96.27 | 99.10 | 91.49 | 85.41 | 84.19 | 78.29 | 75.84 | 72.57 | 66.07 | 68.03 | 66.54 | 68.32 | 61.44 | 64.90 | 68.50 |
| Days of sales outstanding (DSO) | days | 71.15 | 67.50 | 71.78 | 72.54 | 67.47 | 63.64 | 64.26 | 65.39 | 65.52 | 64.69 | 66.40 | 65.78 | 64.58 | 65.62 | 68.93 | 66.58 | 66.82 | 66.52 | 63.46 | 61.04 |
| Number of days of payables | days | 64.24 | 61.46 | 66.28 | 64.20 | 58.17 | 55.64 | 53.60 | 54.78 | 52.73 | 49.33 | 48.91 | 56.48 | 58.68 | 53.29 | 51.73 | 50.01 | 50.68 | 44.56 | 44.60 | 46.64 |
| Cash conversion cycle | days | 103.35 | 103.63 | 101.50 | 108.79 | 104.39 | 104.28 | 109.76 | 102.10 | 98.21 | 99.55 | 95.78 | 85.14 | 78.47 | 78.40 | 85.23 | 83.11 | 84.45 | 83.40 | 83.76 | 82.89 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.44 + 71.15 – 64.24
= 103.35
The cash conversion cycle (CCC) of Avnet Inc exhibited a relatively stable pattern from September 2020 through the first half of 2023, generally fluctuating within a range of approximately 78 to 86 days. During this period, the CCC demonstrated minimal significant shifts, indicating consistent management of inventory, receivables, and payables.
Starting in late 2022, a notable upward trend in the CCC became evident. From approximately 86 days at the end of September 2022, the cycle increased steadily, reaching a peak of approximately 109.76 days by the end of December 2023. This substantial rise indicates a elongation in the average time taken to convert investments in inventory and receivables into cash, relative to the period of accounts payable.
Throughout 2024 and into mid-2025, the CCC continued to fluctuate within a broad range, with values mostly hovering around 103 to 108 days. This suggests periods of operational adjustments or changes in credit policies, inventory management, or supplier payment terms.
Overall, the trend indicates that Avnet's cash conversion cycle has lengthened over the analyzed period, particularly post-2022. The increasing CCC may imply longer collection periods, inventory holding durations, or extended payment cycles, which could impact liquidity and working capital management. The steady rise highlights potential operational or strategic shifts, requiring further analysis to determine underlying causes and implications for the company's financial health.
Peer comparison
Jun 30, 2025