ConAgra Foods Inc (CAG)
Cash conversion cycle
| 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 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 82.61 | 72.68 | 75.20 | 67.29 | 65.77 | 79.14 | 79.90 | 86.06 | 87.62 | 87.44 | 86.01 | 78.95 | 76.76 | 84.09 | 84.63 | 80.13 | 81.61 | 78.31 | 78.06 | 73.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 26.60 | — | 27.61 | — | 30.18 | — | 30.23 | — | 28.46 | — | 28.26 | — | 28.05 | — | 25.10 | — |
| Number of days of payables | days | — | — | — | — | 47.16 | — | 52.86 | — | 56.73 | — | 55.14 | — | 52.93 | — | 57.36 | — | 55.49 | — | 64.82 | — |
| Cash conversion cycle | days | 82.61 | 72.68 | 75.20 | 67.29 | 45.21 | 79.14 | 54.65 | 86.06 | 61.07 | 87.44 | 61.10 | 78.95 | 52.29 | 84.09 | 55.52 | 80.13 | 54.17 | 78.31 | 38.34 | 73.52 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 82.61 + — – —
= 82.61
The cash conversion cycle of ConAgra Foods Inc has shown fluctuations over the reported periods, ranging from a low of 38.34 days to a high of 87.44 days. 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, and then back into cash through the collection of accounts receivable.
A lower cash conversion cycle is generally favorable as it indicates that the company is able to efficiently manage its working capital and convert its assets into cash quickly. On the other hand, a higher cash conversion cycle may suggest inefficiencies in managing inventory, accounts receivable, or accounts payable.
ConAgra Foods Inc experienced a notable decrease in the cash conversion cycle from August 2022 to May 2023, indicating improvements in managing its working capital during this period. However, there was an increase in the cash conversion cycle from May 2024 to February 2025, suggesting potential challenges in the company's working capital management.
Overall, it is important for ConAgra Foods Inc to closely monitor its cash conversion cycle to ensure efficient management of working capital and optimize cash flow generation from its operating activities. Evaluating trends in the cash conversion cycle can provide insights into the company's operational efficiency and financial health.
Peer comparison
Feb 28, 2025