Acuity Brands Inc (AYI)
Cash conversion cycle
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 42.42 | 40.29 | 40.28 | 38.67 | 37.98 | 40.77 | 43.67 | 49.06 | 50.12 | 82.51 | 78.70 | 69.45 | 65.85 | 44.84 | 40.11 | 38.70 | 38.67 | 42.75 | 40.21 | 40.50 |
| Days of sales outstanding (DSO) | days | 53.76 | 49.35 | 47.37 | 49.02 | 51.80 | 49.45 | 46.77 | 52.66 | 61.08 | 56.07 | 53.55 | 53.75 | 60.30 | 55.24 | 50.47 | 49.44 | 54.90 | 48.75 | 52.13 | 51.83 |
| Number of days of payables | days | 38.56 | 34.99 | 34.56 | 33.01 | 29.44 | 35.05 | 32.50 | 41.82 | 41.05 | 64.26 | 68.24 | 64.65 | 64.66 | 46.11 | 40.14 | 38.85 | 39.44 | 39.86 | 38.47 | 36.95 |
| Cash conversion cycle | days | 57.62 | 54.65 | 53.09 | 54.68 | 60.33 | 55.17 | 57.94 | 59.90 | 70.15 | 74.32 | 64.01 | 58.56 | 61.49 | 53.98 | 50.44 | 49.29 | 54.12 | 51.63 | 53.87 | 55.38 |
August 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 42.42 + 53.76 – 38.56
= 57.62
The cash conversion cycle for Acuity Brands Inc has shown fluctuations over the past few years. The company's cash conversion cycle measures how long it takes for the company to convert its raw materials into cash received from sales.
Analyzing the data provided, we can see that the cash conversion cycle for Acuity Brands Inc ranged from a low of 49.29 days to a high of 74.32 days in the most recent periods. A lower cash conversion cycle is generally favorable as it indicates that the company is able to efficiently manage its working capital and convert its inventory and accounts receivables into cash more quickly.
The trend in the cash conversion cycle for Acuity Brands Inc data shows some variability, which may indicate fluctuations in the company's inventory management, accounts receivable collection, and accounts payable payment processes. It is important for the company to monitor and potentially improve its cash conversion cycle to enhance its liquidity and operational efficiency.
Overall, further analysis of the underlying factors contributing to the fluctuations in the cash conversion cycle, such as inventory turnover, accounts receivable collection period, and accounts payable payment period, would provide valuable insights for Acuity Brands Inc to optimize their working capital management and enhance cash flow.
Peer comparison
Aug 31, 2024