Caseys General Stores Inc (CASY)

Cash conversion cycle

		Apr 30, 2024	Apr 30, 2023	Apr 30, 2022	Apr 30, 2021	Apr 30, 2020
Days of inventory on hand (DOH)	days	12.81	10.85	13.39	15.19	12.25
Days of sales outstanding (DSO)	days	0.42	0.56	1.24	0.40	0.58
Number of days of payables	days	17.01	16.17	19.90	18.84	9.59
Cash conversion cycle	days	-3.79	-4.76	-5.27	-3.25	3.24

April 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.81 + 0.42 – 17.01
= -3.79

The cash conversion cycle (CCC) of Caseys General Stores Inc improved over the past five years, indicating more efficient management of working capital. In the latest fiscal year ending April 30, 2024, the company's CCC was -3.79 days, compared to -4.76 days in the prior year and -5.27 days in the year before that. This trend suggests that Caseys General Stores Inc has been able to optimize its cash flow operations and convert its resources into cash more rapidly.

However, it is noteworthy that in the fiscal year ending April 30, 2020, Caseys General Stores Inc had a positive CCC of 3.24 days, indicating a temporary inefficiency in managing its working capital. This anomaly could have been due to various factors such as changes in inventory management, accounts payable, or receivable processes.

Overall, the negative CCC values in recent years reflect a favorable position for Caseys General Stores Inc in terms of liquidity and efficient use of its resources to generate cash. Continuing to monitor and further improve the cash conversion cycle will be crucial for sustaining financial health and optimizing operations in the future.