Cirrus Logic Inc (CRUS)

Cash conversion cycle

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 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
Days of inventory on hand (DOH)	days	121.29	114.35	107.46	94.50	84.27	97.11	141.30	132.07	121.08	90.59	56.46	63.21	69.82	58.90	70.22	91.98	102.82	95.54	80.18	128.80
Days of sales outstanding (DSO)	days	41.58	51.86	62.04	37.59	30.37	41.79	60.08	56.35	37.29	28.94	49.00	56.35	39.67	49.23	75.10	67.36	35.50	28.98	65.94	53.26
Number of days of payables	days	25.61	32.33	36.34	31.51	20.60	21.27	37.52	35.07	30.55	31.61	43.49	45.32	48.63	49.11	52.13	188.83	50.81	56.65	51.03	61.06
Cash conversion cycle	days	137.26	133.89	133.16	100.57	94.04	117.62	163.87	153.35	127.81	87.92	61.97	74.24	60.86	59.02	93.20	-29.49	87.51	67.87	95.09	121.00

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 121.29 + 41.58 – 25.61
= 137.26

The cash conversion cycle of Cirrus Logic Inc has shown fluctuations over the past few quarters. It reflects the time it takes for the company to convert its investments in inventory and other resources to cash flows from sales.

From September 2020 to March 2021, the company significantly improved its cash conversion cycle from 121.00 days to 67.87 days, indicating more efficiency in managing its cash flow. However, by June 2021, the cycle increased to 87.51 days, suggesting a slightly slower conversion process.

Interestingly, by September 2021, the cash conversion cycle turned negative at -29.49 days, indicating that the company was able to convert investment in resources back to cash quicker than its sales cycle, implying potential liquidity challenges or efficient working capital management.

The cycle increased again in December 2021 to 93.20 days and continued to fluctuate over the next few quarters, with periods of improvement and deterioration. As of March 2025, the cycle stood at 137.26 days, indicating a longer time taken for the company to convert its investments into cash.

Overall, the cash conversion cycle of Cirrus Logic Inc has exhibited variability, possibly influenced by factors such as inventory management, accounts receivable collection, and payment to suppliers. Monitoring and managing this cycle effectively are crucial for optimizing cash flow efficiency and overall financial performance.