Capri Holdings Ltd (CPRI)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 184.15 | 197.56 | 174.01 | 166.91 | 201.03 | 215.66 | 228.57 | 202.63 | 220.90 | 213.53 | 234.14 | 209.45 | 194.64 | 183.03 | 162.13 | 183.62 | 184.13 | 194.08 | 180.50 |
| Days of sales outstanding (DSO) | days | 31.60 | 21.68 | 26.10 | 23.10 | 26.97 | 25.64 | 29.18 | 21.48 | 23.97 | 23.51 | 27.41 | 26.23 | 28.02 | 30.58 | 28.54 | 30.40 | 33.53 | 34.74 | 29.71 | 14.35 |
| Number of days of payables | days | — | 110.04 | 94.76 | 80.25 | 68.16 | 72.92 | 69.66 | 93.31 | 91.06 | 96.50 | 66.96 | 99.95 | 106.06 | 118.02 | 103.77 | 98.98 | 127.74 | 115.52 | 116.45 | 113.48 |
| Cash conversion cycle | days | 31.60 | 95.79 | 128.90 | 116.86 | 125.72 | 153.74 | 175.18 | 156.74 | 135.54 | 147.90 | 173.99 | 160.42 | 131.40 | 107.20 | 107.79 | 93.55 | 89.42 | 103.36 | 107.35 | 81.37 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 31.60 – —
= 31.60
The cash conversion cycle of Capri Holdings Ltd has shown fluctuations over the periods provided. Initially, the trend was relatively stable, with the cycle ranging between 81.37 days and 107.79 days. However, from March 31, 2022, the cycle started to increase significantly, reaching its peak at 173.99 days on September 30, 2022. This prolonged cycle suggests that the company takes longer to convert its investments in inventory into cash receipts from sales and then into cash.
Following the peak, there was a slight decrease in the cycle, but it remained elevated compared to the earlier periods. The cycle reduced to 95.79 days by December 31, 2024, indicating some improvement in the efficiency of cash conversion. Subsequently, there was a significant decline in the cycle to 31.60 days by March 31, 2025, suggesting a notable improvement in the company's management of working capital.
Overall, the cash conversion cycle of Capri Holdings Ltd has displayed variability, with periods of extended cycles followed by improvements in efficiency. It is important for the company to closely monitor and manage its working capital to ensure optimal cash flow and operational performance.
Peer comparison
Mar 31, 2025