Concentrix Corporation (CNXC)

Cash conversion cycle

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021
Days of inventory on hand (DOH)	days	—	17.79	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	89.28	96.90	77.17	78.62	78.49	80.25	80.42	80.22	83.80	78.92
Number of days of payables	days	14.69	19.60	12.02	13.08	12.54	14.47	10.50	10.46	11.59	13.05
Cash conversion cycle	days	74.59	95.10	65.15	65.55	65.95	65.78	69.92	69.76	72.22	65.86

February 29, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 89.28 – 14.69
= 74.59

The cash conversion cycle of Concentrix Corporation has shown fluctuation over the past several quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In the most recent quarter, as of February 29, 2024, the cash conversion cycle stood at 74.59 days, a decrease from the previous quarter's 95.10 days. This improvement suggests that Concentrix has become more efficient in managing its working capital and converting assets into cash.

Looking back over the past year, there have been variations in the cash conversion cycle, ranging from 65.15 days to 95.10 days. These fluctuations may indicate changes in Concentrix's inventory management, accounts receivable collection, and accounts payable policies over the period.

Overall, a lower cash conversion cycle is favorable as it implies that Concentrix is able to generate cash quickly from its operating activities. However, it is essential to analyze the components of the cycle in more detail to understand the specific drivers of these changes and to evaluate the company's overall liquidity and operational efficiency.