Capri Holdings Ltd (CPRI)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 58.29 | 78.35 | 84.77 | 67.01 | 52.63 |
| Days of sales outstanding (DSO) | days | 23.60 | 24.08 | 27.97 | 33.67 | 20.34 |
| Number of days of payables | days | 23.80 | 35.21 | 42.93 | 46.62 | 27.24 |
| Cash conversion cycle | days | 58.09 | 67.22 | 69.81 | 54.07 | 45.73 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 58.29 + 23.60 – 23.80
= 58.09
The cash conversion cycle of Capri Holdings Ltd has shown varying trends over the past five years. In the fiscal year ending March 31, 2024, the company's cash conversion cycle decreased to 58.09 days from 67.22 days in the previous year. This decrease indicates that the company was able to convert its investments in inventory and accounts receivable into cash more efficiently, potentially improving its liquidity position.
Comparing the most recent data to five years ago, there has been an overall increase in the cash conversion cycle from 45.73 days in 2020 to 58.09 days in 2024. This suggests that Capri Holdings Ltd may be taking longer to convert its resources into cash, which could potentially impact its working capital management and overall financial efficiency.
It is essential for the company to monitor and manage its cash conversion cycle effectively to optimize its liquidity and operational efficiency. By analyzing the trend in the cash conversion cycle over the years, Capri Holdings Ltd can identify areas for improvement and implement strategies to enhance cash flow and working capital management.
Peer comparison
Mar 31, 2024