Caseys General Stores Inc (CASY)

Cash conversion cycle

		Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019
Days of inventory on hand (DOH)	days	12.99	12.76	12.85	13.05	10.99	11.17	11.54	12.34	13.58	13.29	14.65	15.92	15.48	16.29	14.47	13.24	12.25	12.86	13.58	13.52
Days of sales outstanding (DSO)	days	0.42	0.54	0.05	—	0.56	0.15	—	0.54	1.24	0.31	0.58	0.31	0.40	—	—	—	0.58	1.77	1.75	1.54
Number of days of payables	days	17.26	16.06	18.44	17.52	16.37	14.95	17.23	19.13	20.18	15.09	21.31	21.35	19.21	19.93	18.75	17.20	9.59	13.48	16.37	17.14
Cash conversion cycle	days	-3.85	-2.76	-5.54	-4.48	-4.82	-3.64	-5.69	-6.25	-5.36	-1.49	-6.08	-5.12	-3.32	-3.64	-4.28	-3.95	3.24	1.15	-1.04	-2.09

April 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.99 + 0.42 – 17.26
= -3.85

The cash conversion cycle of Caseys General Stores Inc has been fluctuating over the past several periods. The company's cash conversion cycle, which represents the time it takes to convert inventory and accounts receivable into cash, has ranged from -6.25 days to 3.24 days during the time frame provided.

A negative cash conversion cycle indicates that Caseys General Stores Inc is able to collect cash from customers (accounts receivable) and sell inventory before having to pay suppliers, resulting in a favorable position where the company has cash on hand before outgoing payments are due. This can be advantageous for the company's liquidity and working capital management.

The company experienced its most efficient cash conversion cycle of -6.25 days in Jul 31, 2022, implying a strong position in managing its working capital. Conversely, the highest cash conversion cycle of 3.24 days in Jan 31, 2020, suggests a longer period required to convert inventory and receivables into cash, which may impact the company's cash flow and liquidity position.

Overall, monitoring the cash conversion cycle trend is essential for Caseys General Stores Inc to assess its efficiency in managing working capital, optimizing cash flow, and sustaining its financial health.