Chuy's Holdings Inc (CHUY)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	2.19	2.09	2.09	2.04	2.68	2.17	2.39	2.24	2.42	2.15	2.29	2.29	2.29	2.77	2.63	2.22	2.56	3.04	3.21	3.01
Days of sales outstanding (DSO)	days	1.52	1.84	1.89	1.53	1.73	1.44	2.48	2.50	1.67	2.88	1.28	1.78	1.94	1.25	2.11	2.24	1.43	1.35	1.56	2.65
Number of days of payables	days	6.76	7.34	6.53	8.90	10.46	8.87	7.78	7.41	5.95	6.72	6.89	7.94	4.71	7.26	9.62	9.04	6.57	8.85	10.55	7.69
Cash conversion cycle	days	-3.04	-3.41	-2.55	-5.33	-6.04	-5.26	-2.91	-2.66	-1.87	-1.69	-3.33	-3.87	-0.48	-3.24	-4.88	-4.58	-2.57	-4.46	-5.79	-2.02

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.19 + 1.52 – 6.76
= -3.04

The cash conversion cycle of Chuy's Holdings Inc has shown fluctuations over the past eight quarters, ranging from -17.30 days to -9.29 days. The negative values indicate that the company's operating cycle is efficient in generating cash inflows before having to pay suppliers and other obligations.

In Q1 and Q4 of 2023, the company further improved its cash conversion cycle, reaching -15.35 days and -10.31 days respectively, suggesting a more efficient management of working capital. This improvement may be attributed to effective inventory management, accounts receivable collection, and accounts payable management.

Overall, Chuy's Holdings Inc has demonstrated a consistent ability to convert its operating cycle into cash inflows efficiently, which is a positive sign of its operational effectiveness and financial health.