Acuity Brands Inc (AYI)
Cash conversion cycle
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 38.39 | 46.37 |
| Days of sales outstanding (DSO) | days | 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 | 55.75 | 56.76 |
| Number of days of payables | days | 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 | 38.16 | 44.97 |
| Cash conversion cycle | days | 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 | 55.98 | 58.17 |
February 29, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 40.28 + 47.37 – 34.56
= 53.09
The cash conversion cycle of Acuity Brands Inc shows fluctuations over the past several periods. The cycle measures the average amount of time in days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From Feb 29, 2024, to Nov 30, 2023, the cash conversion cycle decreased slightly from 54.68 days to 53.09 days. This suggests an improvement in the efficiency of Acuity Brands in managing its working capital during this period.
Looking further back, in Aug 31, 2022, the cash conversion cycle peaked at 74.32 days, indicating a longer wait time for the company to convert its investments into cash. The cycle then decreased over the subsequent periods, reaching a low of 49.29 days on Nov 30, 2021, before fluctuating in the mid-50s days range.
Overall, Acuity Brands Inc experienced variability in its cash conversion cycle over the observed periods, with some improvements in efficiency evidenced by shorter cycles. However, there were also instances of longer cycles, which may indicate challenges in managing working capital effectively. Monitoring and optimizing the cash conversion cycle can help Acuity Brands enhance operational efficiency and financial performance.
Peer comparison
Feb 29, 2024