ConAgra Foods Inc (CAG)

Cash conversion cycle

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Days of inventory on hand (DOH)	days	62.11	70.67	74.90	78.73	67.28	73.96	75.60	72.58	70.13	63.20	68.03	72.88	64.52	56.46	58.79	57.62	49.65	64.26	68.33	69.22
Days of sales outstanding (DSO)	days	27.37	28.66	30.34	29.91	29.34	29.63	28.43	25.15	28.28	30.24	32.77	28.20	26.85	26.91	31.00	26.85	29.42	31.17	34.08	29.05
Number of days of payables	days	44.54	46.75	48.49	50.47	46.40	50.13	51.40	60.27	66.49	57.03	58.45	62.43	62.49	51.58	57.89	55.56	54.82	52.98	55.64	51.92
Cash conversion cycle	days	44.94	52.57	56.74	58.17	50.23	53.45	52.63	37.46	31.92	36.42	42.35	38.65	28.88	31.79	31.89	28.91	24.25	42.45	46.77	46.35

May 26, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.11 + 27.37 – 44.54
= 44.94

The cash conversion cycle of ConAgra Foods Inc fluctuated over the past few years, ranging from 24.25 days to 58.17 days. A lower cash conversion cycle signifies a more efficient management of the company's cash flows and working capital.

During the most recent period, ending on May 26, 2024, ConAgra Foods Inc had a cash conversion cycle of 44.94 days. This indicates that it takes the company approximately 44.94 days to convert its investments in inventory and other resources into cash from sales.

Comparing to previous periods, there has been an improvement in the cash conversion cycle since the peak of 58.17 days recorded on August 27, 2023. It is evident that the company has effectively managed its working capital and cash flow operations over time to reduce the time it takes to convert resources into cash.

Overall, ConAgra Foods Inc has demonstrated a relatively stable and efficient cash conversion cycle, reflecting effective management of its working capital and the ability to efficiently convert its resources into cash inflows from sales.