CommVault Systems Inc (CVLT)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	—	—	104.27	—	—
Days of sales outstanding (DSO)	days	92.38	96.85	97.90	92.12	94.91
Number of days of payables	days	0.76	0.72	0.29	1.38	1.25
Cash conversion cycle	days	91.62	96.13	201.88	90.74	93.66

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 92.38 – 0.76
= 91.62

CommVault Systems Inc's cash conversion cycle, which measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown some fluctuations over the past five years.

As of March 31, 2021, the cash conversion cycle stood at 93.66 days, indicating that on average, it took the company approximately 93.66 days to complete a full operating cycle from the initial investment in inventory to the collection of cash from customers.

By March 31, 2022, the company managed to slightly reduce its cash conversion cycle to 90.74 days, suggesting an improvement in efficiency in managing its working capital and cash flows.

However, there was a significant increase in the cash conversion cycle to 201.88 days by March 31, 2023. This spike could be indicative of challenges in inventory management or delays in collecting payments from customers, leading to a longer operating cycle and tying up cash in the process.

By March 31, 2024, the cash conversion cycle decreased to 96.13 days, showing some recovery from the previous year's prolonged cycle.

As of March 31, 2025, the company managed to further improve its cash conversion cycle to 91.62 days, indicating better efficiency in managing its working capital and cash conversion processes.

In conclusion, while CommVault Systems Inc experienced some fluctuations in its cash conversion cycle over the past five years, the company showed resilience in optimizing its working capital management to enhance cash flow efficiency.