Chewy Inc (CHWY)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 33.82 | 33.53 | 33.47 | 31.43 | 31.25 | 29.14 | 29.43 | 28.31 | 28.55 | 28.47 | 28.36 | 31.54 | 29.73 | 32.30 | 28.58 | 29.36 | 30.30 | 30.49 | 34.20 | 26.93 |
| Days of sales outstanding (DSO) | days | — | — | 6.15 | — | 6.40 | — | 5.56 | — | 5.07 | — | 5.30 | — | 5.41 | — | — | 4.52 | — | 4.72 | — | — |
| Number of days of payables | days | — | — | 47.92 | — | 45.89 | — | 44.74 | — | 43.86 | — | 42.95 | — | 45.08 | — | — | 44.65 | — | 44.54 | — | — |
| Cash conversion cycle | days | 33.82 | 33.53 | -8.30 | 31.43 | -8.24 | 29.14 | -9.75 | 28.31 | -10.24 | 28.47 | -9.29 | 31.54 | -9.94 | 32.30 | 28.58 | -10.76 | 30.30 | -9.33 | 34.20 | 26.93 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 33.82 + — – —
= 33.82
The cash conversion cycle is a financial metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. It provides insights into how efficiently a company manages its working capital.
Analyzing the cash conversion cycle data provided for Chewy Inc, we observe fluctuations in the company's efficiency in managing its working capital over the reported periods.
- For the most recent report dated January 31, 2025, the cash conversion cycle stands at 33.82 days. This indicates that, on average, it takes Chewy Inc approximately 33.82 days to convert its investments in inventory into cash flows from sales.
- The trend in the cash conversion cycle over the analyzed periods shows variability, with some periods exhibiting negative days. Negative days imply that the company is able to collect cash from sales before paying suppliers for inventory, which can be seen as a positive indicator of efficient working capital management.
- However, fluctuations in the cash conversion cycle may indicate inconsistencies in managing inventory levels, accounts receivable, and accounts payable efficiently.
In conclusion, a stable and optimized cash conversion cycle is crucial for Chewy Inc to ensure liquidity, working capital efficiency, and overall financial health. Monitoring and managing the cash conversion cycle effectively will help the company sustain healthy cash flows and support its operational activities.
Peer comparison
Jan 31, 2025