Cal-Maine Foods Inc (CALM)
Cash conversion cycle
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Jun 1, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Dec 2, 2023 | Nov 30, 2023 | Sep 2, 2023 | Aug 31, 2023 | Jun 3, 2023 | May 31, 2023 | Feb 28, 2023 | Feb 25, 2023 | Nov 30, 2022 | Nov 26, 2022 | Aug 31, 2022 | Aug 27, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 44.76 | 47.94 | 52.22 | 52.60 | 48.25 | 48.06 | 49.99 | 51.96 | 57.58 | 56.16 | 53.23 | 51.40 | 47.77 | 49.39 | 49.31 | 51.55 | 52.23 | 54.62 | 72.76 | 75.88 |
| Days of sales outstanding (DSO) | days | 23.33 | 41.16 | 38.38 | 37.12 | 22.00 | 22.94 | 36.49 | 40.49 | 36.73 | 34.00 | 25.22 | 20.50 | 20.23 | 19.57 | 25.29 | 27.91 | 38.10 | 41.03 | 32.13 | 34.63 |
| Number of days of payables | days | 15.30 | 26.58 | 20.38 | 23.07 | 13.98 | 13.93 | 17.75 | 18.45 | 19.67 | 19.19 | — | 21.56 | 13.87 | 14.34 | 23.50 | — | 28.78 | — | 51.66 | — |
| Cash conversion cycle | days | 52.79 | 62.52 | 70.22 | 66.65 | 56.27 | 57.07 | 68.72 | 74.00 | 74.64 | 70.97 | 78.44 | 50.33 | 54.13 | 54.62 | 51.10 | 79.46 | 61.55 | 95.65 | 53.23 | 110.51 |
May 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.76 + 23.33 – 15.30
= 52.79
The cash conversion cycle (CCC) of Cal-Maine Foods Inc. exhibits notable fluctuations over the analyzed period, reflecting shifts in the company's operational efficiency and liquidity management.
Starting from August 27, 2022, when the CCC was recorded at 110.51 days, there was a significant decrease by August 31, 2022, to 53.23 days. This sharp reduction indicates an improved efficiency in managing receivables and inventories or a faster collection and turnover process during that interval.
Subsequently, the CCC showed some volatility, increasing again to 95.65 days by November 26, 2022, before declining again to 61.55 days by November 30, 2022. The early 2023 period continued this pattern of fluctuation, with a notable decrease to 51.10 days on February 28, 2023, signaling enhanced cash flow management. However, by May 31, 2023, an increase to 54.62 days was observed, followed closely by stabilization at around 54.13 days on June 3, 2023.
In late 2023, the CCC once again decreased to a low of 50.33 days on August 31, 2023, representing an optimal operational efficiency point within the observed timeframe. Nevertheless, a subsequent rise to 78.44 days on September 2, 2023, suggests a period of slower cash cycle efficiency, potentially due to inventory buildup or slower receivables collection.
Towards late 2023 and early 2024, the CCC maintained a relatively high range, reaching 74.64 days on December 2, 2023, and 74.00 days on February 29, 2024. It then declined again to 68.72 days on March 2, 2024, before decreasing further to 57.07 days on May 31, 2024. This downward trend indicates ongoing improvements in cash flow efficiency.
In the most recent measurements, the CCC exhibited an upward trend again, recording 66.65 days on August 31, 2024, and 70.22 days on November 30, 2024. It later declined slightly to 62.52 days as of February 28, 2025, and further to 52.79 days as of May 31, 2025, demonstrating a cyclical pattern with periods of improvement and contraction over time.
Overall, the company’s cash conversion cycle reveals periods of significant efficiency gains followed by fluctuations, suggesting responsive adjustments in inventory management, receivables, and payables. Variability in the CCC over the observed period highlights ongoing efforts to optimize cash flow and operational efficiency, with recent data indicating a trend toward shorter cycles that enhance liquidity position.