Cisco Systems Inc (CSCO)

Cash conversion cycle

		Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023	Jul 31, 2022
Days of inventory on hand (DOH)	days	64.88	36.44	62.61	38.66	48.54
Days of sales outstanding (DSO)	days	—	67.92	—	59.58	—
Number of days of payables	days	—	24.89	—	24.54	—
Cash conversion cycle	days	64.88	79.47	62.61	73.70	48.54

July 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.88 + — – —
= 64.88

The cash conversion cycle of Cisco Systems Inc has shown fluctuations over the past few years. In July 2022, the company's cash conversion cycle was 48.54 days, indicating that it took approximately 48.54 days for Cisco to convert its investments in inventory and accounts receivable into cash.

By July 2023, the cash conversion cycle had increased to 73.70 days, suggesting that Cisco was taking longer to convert its assets into cash. However, the company managed to reduce this cycle to 62.61 days by the end of July 2023, improving its cash conversion efficiency.

In July 2024, the cash conversion cycle increased again to 79.47 days, indicating that Cisco may have faced challenges in managing its working capital efficiently during that period. Nevertheless, the company was able to bring down the cash conversion cycle to 64.88 days by the end of July 2024, suggesting a slight improvement in its ability to convert assets into cash.

Overall, Cisco Systems Inc should continue to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management and liquidity.