Cracker Barrel Old Country Store (CBRL)

Cash conversion cycle

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Days of inventory on hand (DOH)	days	24.51	26.46	31.82	24.27	25.98
Days of sales outstanding (DSO)	days	5.18	3.45	3.88	6.28	7.11
Number of days of payables	days	21.98	23.13	25.35	23.72	19.33
Cash conversion cycle	days	7.71	6.79	10.35	6.83	13.76

August 2, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.51 + 5.18 – 21.98
= 7.71

The cash conversion cycle of Cracker Barrel Old Country Store has shown fluctuations over the past five years. In the most recent fiscal year ending on August 2, 2024, the company's cash conversion cycle increased to 7.71 days from 6.79 days in the previous year. This indicates that it took Cracker Barrel Old Country Store slightly longer to convert its investments in inventory and receivables into cash during the year.

Comparing this to historical data, the cash conversion cycle was at its highest in July 31, 2020, at 13.76 days, reflecting a longer period for the company to convert its resources into cash. Conversely, the lowest cash conversion cycle was observed in July 28, 2023, at 6.79 days, indicating a more efficient management of cash flow and working capital during that period.

Overall, fluctuations in the cash conversion cycle suggest variability in Cracker Barrel Old Country Store's efficiency in managing its inventory, receivables, and payables over the past five years. Investors and stakeholders may need to further investigate the reasons behind these fluctuations to assess the company's financial health and operational efficiency.