Capri Holdings Ltd (CPRI)
Cash conversion cycle
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 58.29 | 74.10 | 80.44 | 86.00 | 78.35 | 88.13 | 87.67 | 95.14 | 84.77 | 76.36 | 69.55 | 63.10 | 66.93 | 90.56 | 99.69 | 90.65 | 67.29 | 86.88 | 103.00 | 105.75 |
| Days of sales outstanding (DSO) | days | 23.60 | 23.65 | 26.35 | 20.15 | 24.08 | 23.52 | 27.32 | 24.91 | 27.97 | 30.48 | 25.82 | 28.71 | 33.67 | 33.37 | 29.19 | 14.40 | 20.32 | 20.61 | 24.42 | 21.44 |
| Number of days of payables | days | 23.80 | 26.88 | 25.98 | 35.11 | 35.21 | 38.50 | 27.49 | 40.61 | 42.93 | 46.30 | 39.43 | 38.53 | 46.56 | 56.82 | 59.81 | 56.99 | 34.82 | 33.94 | 37.44 | 36.95 |
| Cash conversion cycle | days | 58.09 | 70.88 | 80.80 | 71.04 | 67.22 | 73.15 | 87.50 | 79.44 | 69.81 | 60.54 | 55.93 | 53.28 | 54.04 | 67.12 | 69.06 | 48.06 | 52.78 | 73.55 | 89.98 | 90.24 |
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 varied over the past few quarters, indicating fluctuations in the company's efficiency in managing its working capital. The cycle measures the time it takes for the company to convert its investments in inventory into cash received from sales.
The trend shows that the company's cash conversion cycle has been fluctuating within a range of 48.06 days to 90.24 days over the past two years. A shorter cash conversion cycle is generally indicative of a more efficient working capital management, whereas a longer cycle suggests delays in converting inventory into cash.
In the most recent quarter, the cash conversion cycle of 58.09 days improved compared to the previous quarter, reflecting potential enhancements in inventory management or quicker cash collection processes. However, the cycle was still higher than levels seen in some prior periods, indicating room for further efficiency improvements.
Overall, Capri Holdings Ltd should continue to monitor and manage its cash conversion cycle effectively to optimize its working capital and enhance its overall financial performance.
Peer comparison
Mar 31, 2024