Calix Inc (CALX)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 87.39 | 76.09 | 79.77 | 86.57 | 79.69 | 82.26 | 62.79 | 72.04 | 64.40 | 56.01 | 59.94 | 58.74 | 45.52 | 38.40 | 34.88 | 30.39 | 40.88 | 47.06 | 46.50 | 51.87 |
| Days of sales outstanding (DSO) | days | 44.21 | 30.73 | 35.68 | — | 39.44 | — | — | — | 45.78 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 22.83 | 11.23 | 18.39 | 19.57 | 22.12 | 38.61 | 14.66 | 25.76 | 21.06 | 23.35 | 27.18 | 23.77 | 11.42 | 15.28 | 9.71 | 20.37 | 10.98 | 24.52 | 38.47 | 37.70 |
| Cash conversion cycle | days | 108.77 | 95.60 | 97.06 | 67.00 | 97.00 | 43.64 | 48.13 | 46.28 | 89.13 | 32.66 | 32.77 | 34.97 | 34.10 | 23.12 | 25.17 | 10.03 | 29.89 | 22.54 | 8.04 | 14.17 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.39 + 44.21 – 22.83
= 108.77
The cash conversion cycle of Calix Inc has fluctuated over the past few quarters, ranging from a low of 114.55 days in Q3 2022 to a high of 131.95 days in Q1 2023. Generally, a longer cash conversion cycle indicates that the company takes longer to convert its investments in inventory and other resources into cash from sales. This could suggest inefficiencies in inventory management or slower collection of accounts receivable.
A downward trend in the cash conversion cycle is typically viewed positively as it indicates that the company is improving its efficiency in managing working capital. However, a sharp decrease in the cash conversion cycle could also signal aggressive sales tactics, such as offering extended credit terms, which may have implications for liquidity and profitability.
Overall, a detailed analysis of the reasons behind the fluctuations in Calix Inc's cash conversion cycle over time, along with comparisons to industry benchmarks, would provide deeper insights into the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023