Capri Holdings Ltd (CPRI)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 171.84 | 203.59 | 209.45 | 183.62 |
| Days of sales outstanding (DSO) | days | — | 26.97 | 25.27 | 28.02 | 33.53 |
| Number of days of payables | days | — | 70.17 | 91.49 | 106.06 | 127.74 |
| Cash conversion cycle | days | 0.00 | 128.63 | 137.37 | 131.40 | 89.42 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle for Capri Holdings Ltd has shown fluctuations over the past few years. As of March 31, 2021, the cash conversion cycle was at 89.42 days, indicating that it took the company about 89.42 days to convert its investments in inventory and other resources back into cash.
However, by March 31, 2022, the cash conversion cycle increased to 131.40 days, suggesting that the company took longer to convert its resources into cash during that period. This increase could be a result of various factors such as changes in inventory management practices, payment terms with suppliers, or the efficiency of the company's operations.
By March 31, 2023, the cash conversion cycle further increased to 137.37 days, indicating a continued trend of slower cash conversion for the company. This could potentially signal issues with managing working capital efficiently or delays in collecting receivables.
The cash conversion cycle decreased to 128.63 days by March 31, 2024, showing some improvement in the company's ability to convert its resources into cash. However, it still remained higher compared to previous years, signifying that there may still be room for further optimization in working capital management.
Surprisingly, by March 31, 2025, the cash conversion cycle was reported as 0.00 days. This could be an anomaly or an indication that the company significantly improved its efficiency in managing working capital, possibly through streamlining operations, reducing inventory levels, or improving collection processes.
Overall, fluctuations in the cash conversion cycle can provide insights into a company's efficiency in managing its working capital. Analyzing these changes over time can help stakeholders assess operational efficiency, liquidity management, and the effectiveness of the company's supply chain management practices.
Peer comparison
Mar 31, 2025