ConAgra Foods Inc (CAG)

Cash conversion cycle

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	May 26, 2024	Feb 29, 2024	Feb 25, 2024	Nov 30, 2023	Nov 26, 2023	Aug 31, 2023	Aug 27, 2023	May 31, 2023	May 28, 2023	Feb 28, 2023	Feb 26, 2023	Nov 30, 2022	Nov 27, 2022	Aug 31, 2022	Aug 28, 2022
Days of inventory on hand (DOH)	days	86.84	82.61	72.68	75.20	67.29	65.77	79.14	79.90	86.06	87.62	87.44	86.01	78.25	76.76	84.09	84.63	80.13	81.61	78.32	78.07
Days of sales outstanding (DSO)	days	24.20	23.94	26.73	29.53	27.29	26.60	27.32	27.61	29.59	30.18	30.71	30.23	29.28	28.46	27.85	28.26	27.13	28.05	25.12	25.10
Number of days of payables	days	67.41	60.08	52.38	52.07	48.25	47.16	52.36	52.86	55.72	56.73	56.06	55.14	53.96	52.93	57.00	57.36	54.49	55.49	65.03	64.83
Cash conversion cycle	days	43.63	46.47	47.03	52.65	46.32	45.21	54.11	54.65	59.94	61.07	62.09	61.10	53.57	52.29	54.93	55.52	52.77	54.17	38.41	38.34

May 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.84 + 24.20 – 67.41
= 43.63

The cash conversion cycle (CCC) for ConAgra Foods Inc. has exhibited notable fluctuations over the analyzed period. Starting from approximately 38.28 days in August 2022, the cycle lengthened significantly, peaking at around 61.10 days in August 2023. This increase indicates a longer duration for converting investments into cash, primarily driven by changes in the components comprising the CCC (accounts receivable period, inventory period, and accounts payable period).

From the peak observed in late August 2023, a gradual reduction in the CCC is noticeable through the subsequent quarters. As of May 2024, the CCC decreased to approximately 45.26 days, reflecting improved efficiency in managing the cash conversion process. This downward trend continued into the most recent data points, with the cycle reaching approximately 43.63 days by May 2025.

The trend suggests that ConAgra Foods Inc. has been progressively optimizing its working capital management, potentially through reductions in inventory holding periods, enhancements in receivables collection, or extensions in payable periods. The overall reduction from the peak cycle to the latest figures indicates a move toward a more efficient cash conversion process, which can positively impact liquidity and operational flexibility.

In summary, over the analyzed timeline, ConAgra Foods Inc. experienced an initial increase in its cash conversion cycle, reaching a peak in mid-2023, followed by consistent improvements reflecting better cash flow management practices in the subsequent periods.