CommVault Systems Inc (CVLT)

Cash conversion cycle

		Mar 31, 2024	Dec 31, 2023	Sep 30, 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	—	22.53	22.67	23.06	22.98	—	—	—	—	—	—	—	—	—	—	—	24.94	23.52	—	—
Days of sales outstanding (DSO)	days	96.85	99.65	89.88	82.10	97.90	99.96	78.21	84.51	92.12	103.00	81.95	79.01	94.91	99.86	74.02	80.20	79.97	85.80	66.96	72.07
Number of days of payables	days	0.17	0.12	0.08	0.17	0.06	0.27	0.12	0.53	0.27	0.16	0.11	0.08	0.22	0.46	0.25	0.25	0.96	3.14	5.20	3.00
Cash conversion cycle	days	96.68	122.06	112.47	104.98	120.81	99.69	78.09	83.98	91.85	102.84	81.84	78.93	94.69	99.40	73.77	79.95	103.95	106.18	61.77	69.07

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 96.85 – 0.17
= 96.68

The cash conversion cycle of CommVault Systems Inc has exhibited fluctuations over the periods analyzed. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Looking at the data, the company's cash conversion cycle has ranged from a low of 61.77 days to a high of 122.06 days. A shorter cash conversion cycle is generally favorable as it indicates that the company is able to efficiently manage its working capital and convert its investments into cash quickly.

In the recent periods, the trend in the cash conversion cycle has shown some variability, with fluctuations in the duration of the cycle. For example, there was a notable increase in the cash conversion cycle from Sep 2023 to Dec 2023, followed by a decrease in the cycle in the subsequent period. This indicates that the company may have experienced challenges in managing its working capital efficiently at certain points in time.

Overall, it is essential for the company to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and efficiency in converting investments into cash inflows. This analysis provides insights into the company's operational and financial performance dynamics over the periods studied.