Cirrus Logic Inc (CRUS)

Cash conversion cycle

		Mar 31, 2024	Dec 31, 2023	Sep 23, 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	79.18	81.04	104.54	92.60	69.68	47.75	53.11	58.35	48.89	57.54	75.41	83.59	77.67	83.97	134.62	124.92	91.93	67.07	71.19	71.89
Days of sales outstanding (DSO)	days	33.17	44.33	56.36	37.30	28.96	49.00	56.35	39.67	49.21	75.14	67.39	35.52	29.00	65.98	53.29	38.79	43.90	51.73	66.79	34.83
Number of days of payables	days	19.35	17.75	27.76	23.37	24.31	36.78	38.08	40.64	40.76	42.71	154.81	41.31	46.06	53.44	63.82	59.86	49.13	48.06	53.76	29.68
Cash conversion cycle	days	92.99	107.61	133.15	106.54	74.33	59.97	71.38	57.37	57.34	89.96	-12.01	77.80	60.61	96.51	124.09	103.85	86.70	70.73	84.22	77.04

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 79.18 + 33.17 – 19.35
= 92.99

The cash conversion cycle of Cirrus Logic Inc has exhibited fluctuations over the past few quarters. It provides insight into the efficiency of the company's working capital management.

The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash receipts from customers. A shorter cash conversion cycle indicates better liquidity and efficiency in managing cash flows.

In the recent quarters, Cirrus Logic Inc's cash conversion cycle has demonstrated variability. For example, it increased from 74.33 days on March 31, 2023, to 133.15 days on September 23, 2023, before decreasing to 107.61 days on December 31, 2023. This fluctuation may suggest changes in the company's inventory management, accounts receivable collection, and accounts payable policies.

The negative cash conversion cycle reported on September 30, 2021, might indicate that Cirrus Logic Inc was efficiently managing its working capital during that period, potentially benefiting from faster cash collections compared to inventory and payables turnover.

Overall, analyzing the trend of the cash conversion cycle can provide valuable insights into the company's operational efficiency and financial health, highlighting areas that may require attention or improvement.