Campbell Soup Company Common Stock (CPB)

Cash conversion cycle

		Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019
Days of inventory on hand (DOH)	days	59.11	58.46	54.41	61.38	59.26	58.45	58.12	65.31	62.13	54.76	48.63	52.00	49.58	46.22	45.35	54.33	55.85	48.47	53.28	60.14
Days of sales outstanding (DSO)	days	23.86	25.13	25.00	28.49	20.64	20.78	23.74	30.06	23.06	22.08	26.82	31.87	25.62	24.30	28.58	31.56	24.15	28.89	29.82	32.90
Number of days of payables	days	55.91	59.81	59.76	62.66	59.95	61.78	63.84	69.44	66.52	67.45	62.03	61.45	56.87	58.36	57.09	62.62	67.27	65.84	63.12	60.35
Cash conversion cycle	days	27.06	23.78	19.64	27.21	19.95	17.44	18.03	25.93	18.67	9.39	13.42	22.42	18.34	12.16	16.84	23.26	12.73	11.52	19.97	32.70

July 28, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.11 + 23.86 – 55.91
= 27.06

The cash conversion cycle for Campbell Soup Company Common Stock has shown fluctuations over the past few quarters. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash receipts from customers.

On a quarterly basis, the cash conversion cycle ranged from a low of 9.39 days to a high of 32.70 days. A lower number indicates that the company is able to convert its resources into cash more quickly, which is generally favorable. The most recent data point for the cycle stands at 27.06 days.

The trend in the cash conversion cycle indicates that the company has seen some variability in its efficiency in managing its working capital over the quarters. It is important for investors and analysts to monitor this metric closely, as it can provide insights into the company's operational effectiveness and financial health. Further analysis and comparison with industry benchmarks can help in evaluating the company's performance in managing its cash flow and working capital effectively.