Caseys General Stores Inc (CASY)

Cash conversion cycle

		Apr 30, 2025	Apr 30, 2024	Apr 30, 2023	Apr 30, 2022	Apr 30, 2021
Days of inventory on hand (DOH)	days	—	13.59	11.42	14.19	16.47
Days of sales outstanding (DSO)	days	4.16	4.15	3.48	4.29	3.74
Number of days of payables	days	—	18.05	17.02	21.09	20.43
Cash conversion cycle	days	4.16	-0.32	-2.12	-2.61	-0.22

April 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 4.16 – —
= 4.16

The cash conversion cycle (CCC) of Caseys General Stores Inc. over the period from April 30, 2021, to April 30, 2025, demonstrates notable fluctuations, reflecting evolving operational efficiencies and liquidity management strategies.

In the fiscal year ending April 30, 2021, the company reported a slightly negative CCC of -0.22 days, indicating that, on average, cash inflows from receivables and inventory conversion slightly exceeded the cash outflows related to supplier payables. This suggests a highly efficient working capital cycle, with the company effectively managing its inventory and receivables relative to its payables.

The following year, April 30, 2022, experienced a deterioration in the CCC, shifting to -2.61 days. While still negative, this indicates a longer cash cycle, implying that the company took marginally more time to convert its investments in inventory and receivables into cash relative to its payables. This could be reflective of changes in supplier payment terms, inventory turnover rates, or receivables collections.

By April 30, 2023, the CCC improved slightly to -2.12 days. Although still negative, this indicates a minor enhancement in cash flow timing, likely attributable to operational adjustments or improvements in working capital management.

The trend changes again by April 30, 2024, with the CCC moving closer to neutrality at -0.32 days. This proximity to zero suggests a near-synchronous cycle time, with the company effectively balancing its receivables, inventory, and payables, but not achieving full cash cycle efficiency—implying slight delays in cash inflow relative to outflows.

Finally, in the fiscal year ending April 30, 2025, the CCC becomes positive at 4.16 days. This shift signals that the company’s cash inflows lag behind its cash outflows, resulting in a net cash outflow cycle that extends beyond the duration of inventory and receivables collection periods. Such a transition may indicate a strategic change, temporary operational challenges, or shifts in supplier or customer payment behaviors.

Overall, the trajectory from slightly negative to positive CCC over these years indicates a gradual decrease in the company's cash flow efficiency and a move toward a more extended working capital cycle. This trend warrants ongoing scrutiny to identify underlying causes and to evaluate the impact on liquidity and operational flexibility.