Cencora Inc. (COR)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.41 | 25.16 | 24.66 | 27.09 | 24.88 |
| Days of sales outstanding (DSO) | days | 29.75 | 29.22 | 28.49 | 31.37 | 27.55 |
| Number of days of payables | days | 65.46 | 66.07 | 63.70 | 67.01 | 62.65 |
| Cash conversion cycle | days | -11.30 | -11.69 | -10.55 | -8.55 | -10.22 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.41 + 29.75 – 65.46
= -11.30
The cash conversion cycle of Cencora Inc. has fluctuated over the past five years. In 2024, the company reported a cash conversion cycle of -11.30 days, an improvement from the previous year's cycle of -11.69 days. This indicates that Cencora was able to convert its inventory and accounts receivable into cash more efficiently in 2024 compared to 2023.
Looking further back, in 2022, the company's cash conversion cycle was -10.55 days, showing a slight increase from the 2021 cycle of -8.55 days. However, there was a significant improvement compared to the cycle of -10.22 days in 2020.
A negative cash conversion cycle signifies that Cencora Inc. is able to collect cash from customers before paying its suppliers, a favorable position to be in. Overall, the trend observed in the cash conversion cycle of Cencora Inc. indicates an overall improvement in efficiency in managing its working capital over the past five years.
Peer comparison
Sep 30, 2024