Box Inc (BOX)
Cash conversion cycle
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 22.58 | — | 28.05 | 25.43 |
| Days of sales outstanding (DSO) | days | 98.73 | 97.09 | 106.61 | 107.74 | 108.87 |
| Number of days of payables | days | — | — | — | 2.43 | 8.79 |
| Cash conversion cycle | days | 98.73 | 119.67 | 106.61 | 133.35 | 125.51 |
January 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 98.73 – —
= 98.73
The cash conversion cycle of Box Inc has exhibited fluctuating trends over the past five years. In the most recent fiscal year ending January 31, 2024, the cash conversion cycle decreased to 98.73 days compared to the prior year's 119.67 days. This indicates an improvement in the company's ability to convert its investments in inventory and receivables into cash.
However, it is worth noting that the cash conversion cycle was lower in the fiscal years 2022 and 2020 compared to the latest year, indicating a shorter period for Box Inc to convert its resources into cash during those years.
Overall, Box Inc's cash conversion cycle has shown some variability over the years, but the recent decrease in days suggests a more efficient management of working capital and liquidity in the company's operations. Monitoring this metric over time will be essential to assess the company's ongoing effectiveness in managing its cash flows and optimizing its working capital management.
Peer comparison
Jan 31, 2024