CACI International Inc (CACI)

Cash conversion cycle

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Days of inventory on hand (DOH)	days	6.17	7.77	6.36	5.28	4.52
Days of sales outstanding (DSO)	days	49.14	49.35	54.87	53.48	54.20
Number of days of payables	days	14.95	11.79	19.41	9.86	6.24
Cash conversion cycle	days	40.36	45.33	41.82	48.91	52.48

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.17 + 49.14 – 14.95
= 40.36

The cash conversion cycle for CACI International Inc has shown a declining trend over the past five years, indicating an improvement in the management of its working capital. In the most recent fiscal year ending June 30, 2024, the company's cash conversion cycle was 40.36 days, representing the number of days it takes for CACI to convert its resource inputs into cash flows from sales.

This decrease from 45.33 days in the previous year highlights a more efficient utilization of the company's resources and an acceleration in its cash conversion process. CACI's ability to convert its inventory and accounts receivable into cash faster has contributed to shortening its cash conversion cycle, indicating improved liquidity and working capital management.

Comparing the current cash conversion cycle to five years ago, when it was 52.48 days, CACI has made significant strides in streamlining its working capital processes. The downward trend in the cash conversion cycle demonstrates the company's efforts to optimize its operational efficiency and enhance its financial performance.

Overall, the decreasing trend in CACI International Inc's cash conversion cycle reflects a positive development in its working capital management, signaling potential improvements in cash flow generation and overall financial health.