ConAgra Foods Inc (CAG)
Cash conversion cycle
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 87.21 | 61.93 | 89.60 | 67.26 | 82.54 |
| Days of sales outstanding (DSO) | days | — | 27.37 | — | 29.34 | — |
| Number of days of payables | days | — | 44.41 | — | 46.38 | — |
| Cash conversion cycle | days | 87.21 | 44.89 | 89.60 | 50.22 | 82.54 |
May 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.21 + — – —
= 87.21
The cash conversion cycle of ConAgra Foods Inc has shown fluctuations over the past five periods. Beginning on May 31, 2022, the company's cash conversion cycle stood at 82.54 days, indicating the time it takes for ConAgra to convert its investments in inventory and other resources into cash flows. By May 28, 2023, the cycle had decreased to 50.22 days, suggesting an improvement in ConAgra's efficiency in managing its working capital.
However, by May 31, 2023, the cash conversion cycle increased to 89.60 days, reflecting a potential delay in converting resources into cash. Subsequently, there was a notable improvement by May 26, 2024, as the cycle reduced significantly to 44.89 days, indicating a positive trend towards faster conversion of resources into cash.
Finally, as of May 31, 2024, the cash conversion cycle slightly increased to 87.21 days, potentially signaling a temporary slowdown in ConAgra's cash conversion efficiency. Overall, these fluctuations in the cash conversion cycle suggest varying levels of effectiveness in managing working capital and converting investments into cash over the past five periods.
Peer comparison
May 31, 2024