Box Inc (BOX)

Cash conversion cycle

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Days of inventory on hand (DOH)	days	—	21.11	21.50	21.97	22.58	21.54	21.27	21.20	—	—	—	33.20	28.05	37.85	36.94	37.65	33.97	21.96	22.15	22.18
Days of sales outstanding (DSO)	days	98.73	58.90	59.04	48.05	97.09	66.41	64.37	46.83	106.61	66.81	60.08	51.66	107.74	55.59	60.63	50.09	109.20	58.01	65.14	53.70
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	2.43	3.87	6.06	6.08	11.74	8.41	10.45	7.23
Cash conversion cycle	days	98.73	80.01	80.55	70.02	119.67	87.96	85.64	68.03	106.61	66.81	60.08	84.86	133.35	89.57	91.52	81.67	131.42	71.56	76.84	68.65

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 fluctuated over the period from January 2019 to January 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From the data provided, we can observe that the cash conversion cycle ranged from a low of 60.08 days in July 2021 to a high of 133.35 days in January 2021. Overall, there seems to be a general trend of variability in the cash conversion cycle, with periods of shorter and longer cycles evident.

Box Inc's management of its operating cycle, starting from the purchase of inventory to the collection of cash from customers, is crucial in determining the efficiency of its operations. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its resources into revenue more quickly.

Analyzing the trend in the cash conversion cycle over time can provide insights into the company's liquidity, inventory management, and accounts receivable collection. Further examination and comparison with industry benchmarks may help in evaluating Box Inc's operational efficiency and financial health.