Concentrix Corporation (CNXC)

Cash conversion cycle

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021
Days of inventory on hand (DOH)	days	17.79	—	—
Days of sales outstanding (DSO)	days	96.90	80.25	78.92
Number of days of payables	days	19.60	14.47	13.05
Cash conversion cycle	days	95.10	65.78	65.86

November 30, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 17.79 + 96.90 – 19.60
= 95.10

The cash conversion cycle of Concentrix Corp. has shown a fluctuating trend over the past five years. In the most recent fiscal year (ending November 30, 2023), the company's cash conversion cycle increased to 77.31 days from 65.78 days in the previous year. This indicates that the company took longer to convert its investments in inventory and other resources into cash during the year.

Comparing the 2023 figure with the data from 2019, it is evident that there has been a consistent increase in the cash conversion cycle over this period, reflecting potential challenges in efficiently managing the cash flow cycle. This rising trend raises concerns about the company's ability to optimize its working capital and efficiently manage its inventories, credit terms, and accounts receivable.

Overall, the trend in Concentrix Corp.'s cash conversion cycle suggests a need for the company to focus on improving its working capital management to enhance efficiency and liquidity.