Salesforce.com Inc (CRM)
Cash conversion cycle
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 22.31 | 21.42 | 20.65 |
| Days of sales outstanding (DSO) | days | 114.69 | 119.48 | 125.77 | 126.22 | 129.02 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 114.69 | 119.48 | 148.08 | 147.64 | 149.66 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 114.69 – —
= 114.69
The cash conversion cycle of Salesforce.com Inc has shown a decreasing trend over the past few years, indicating improved efficiency in the company's cash management processes. In January 31, 2021, the cash conversion cycle was 149.66 days, which decreased to 147.64 days by January 31, 2022. It further improved to 148.08 days by January 31, 2023. Notably, the cash conversion cycle experienced a significant drop to 119.48 days by January 31, 2024, and a further decrease to 114.69 days by January 31, 2025.
This trend suggests that Salesforce.com Inc has been able to manage its working capital more effectively, leading to a quicker conversion of investments in inventory and other resources into cash inflows. A lower cash conversion cycle indicates that the company is collecting cash from sales more rapidly, paying its suppliers later, and managing inventory efficiently. Overall, the decreasing trend in the cash conversion cycle is a positive indicator of improved liquidity and operational efficiency for Salesforce.com Inc.
Peer comparison
Jan 31, 2025