Chewy Inc (CHWY)
Cash conversion cycle
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 36.38 | 32.87 | 25.16 | 33.92 | 26.33 |
| Days of sales outstanding (DSO) | days | — | — | 5.05 | — | 4.57 |
| Number of days of payables | days | — | — | 38.66 | — | 40.04 |
| Cash conversion cycle | days | 36.38 | 32.87 | -8.45 | 33.92 | -9.14 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.38 + — – —
= 36.38
The cash conversion cycle of Chewy Inc has shown fluctuations over the past few years. In January 2023, the company had a negative cash conversion cycle of -9.14 days, indicating that it took less time to convert its investments in inventory into cash. By January 2024, this cycle decreased further to -8.45 days, reflecting an efficient management of cash flows.
However, in January 2025, Chewy Inc's cash conversion cycle increased to 36.38 days, signifying a longer period for the company to convert its inventory and receivables into cash. This could imply potential challenges in managing working capital efficiently and optimizing the cash conversion process.
Overall, Chewy Inc's cash conversion cycle has displayed mixed trends, with periods of efficiency followed by a more extended cycle. Monitoring and addressing factors impacting the cycle will be critical for the company to maintain healthy cash flow operations and working capital management in the future.
Peer comparison
Jan 31, 2025