Central Garden & Pet Company (CENT)
Cash conversion cycle
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 129.46 | 145.92 | 107.22 | 84.50 | 101.35 |
| Days of sales outstanding (DSO) | days | 36.71 | 41.19 | 42.58 | 53.05 | 45.97 |
| Number of days of payables | days | 29.48 | 33.55 | 38.42 | 39.45 | 32.45 |
| Cash conversion cycle | days | 136.68 | 153.56 | 111.38 | 98.10 | 114.88 |
September 30, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 129.46 + 36.71 – 29.48
= 136.68
The cash conversion cycle of Central Garden & Pet Co. has fluctuated over the past five years. In the most recent fiscal year, ending on September 30, 2023, the company's cash conversion cycle stood at 136.68 days, representing the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. This figure is an increase from the prior fiscal year, indicating a potential inefficiency in its working capital management. However, compared to the fiscal year ending September 25, 2021, the cycle has lengthened. It's important for the company to closely monitor and manage its cash conversion cycle to ensure optimal use of its resources and maintain effective liquidity.
Peer comparison
Sep 30, 2023