CACI International Inc (CACI)

Cash conversion cycle

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Days of inventory on hand (DOH)	days	6.17	7.20	7.71	8.07	7.77	7.44	6.95	6.92	6.36	5.24	5.55	5.33	5.28	5.30	5.30	5.28	4.52	5.71	4.97	—
Days of sales outstanding (DSO)	days	49.14	51.25	49.19	53.39	49.35	55.81	49.34	46.26	54.86	51.34	51.44	46.77	53.38	52.82	46.61	51.81	54.10	55.15	56.51	60.20
Number of days of payables	days	14.95	19.73	16.62	20.41	11.79	19.34	16.55	14.40	19.41	11.70	12.53	7.34	9.86	7.40	4.13	5.44	6.24	15.82	11.61	7.65
Cash conversion cycle	days	40.36	38.72	40.28	41.05	45.33	43.91	39.75	38.78	41.81	44.88	44.46	44.77	48.81	50.72	47.78	51.65	52.38	45.04	49.86	52.55

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 of CACI International Inc has exhibited some fluctuations over the past several quarters, ranging from a low of 38.72 days to a high of 52.55 days.

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally more favorable as it indicates faster turnover of cash, improved liquidity, and more efficient operations.

Analyzing the data provided, we can see that CACI International Inc has shown varying levels of efficiency in managing its working capital during the periods under review. The company's cash conversion cycle has generally been in the range of high 30s to mid-50s days, suggesting that it takes CACI International Inc approximately a month and a half to two months to complete a full cash cycle from the initial investment in inventory to the final collection of cash from customers.

It is important for CACI International Inc to continually monitor and manage its cash conversion cycle to optimize working capital efficiency and improve its overall financial performance. Fluctuations in the cash conversion cycle may indicate changes in inventory management, accounts receivable collection, or accounts payable terms, all of which can impact the company's liquidity and profitability.