CommVault Systems Inc (CVLT)

Cash conversion cycle

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Days of inventory on hand (DOH)	days	—	104.27	—	—	24.94
Days of sales outstanding (DSO)	days	96.85	97.90	92.12	94.91	79.97
Number of days of payables	days	0.72	0.29	1.38	1.25	0.96
Cash conversion cycle	days	96.13	201.88	90.74	93.66	103.95

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 96.85 – 0.72
= 96.13

The cash conversion cycle of CommVault Systems Inc has varied over the past five years. In particular, there was a significant improvement in the cash conversion cycle from the end of fiscal year 2023 to fiscal year 2024, decreasing from 201.88 days to 96.13 days. This suggests that the company was able to more efficiently convert its resources into cash during this period.

Comparing the latest cash conversion cycle of 96.13 days to that of previous years, it is notably lower than the cycle in fiscal years 2022, 2021, and 2020, indicating an overall improvement in the company's cash management efficiency.

The cash conversion cycle is a key metric that reflects the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle indicates that the company is able to generate cash more quickly from its operating activities, which can be a positive sign of operational efficiency and effective working capital management.