Deere & Company (DE)
Cash conversion cycle
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 449.94 | 575.54 | 662.11 | 693.49 | 65.29 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 449.94 | 575.54 | 662.11 | 693.49 | 65.29 |
October 27, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 449.94 + — – —
= 449.94
The cash conversion cycle of Deere & Company has shown fluctuations over the past five years. In the latest fiscal year ending October 27, 2024, the company's cash conversion cycle stands at 449.94 days, reflecting an improvement compared to the prior year's figure of 575.54 days. This indicates that Deere & Company has become more efficient in managing its operating cycle, which encompasses the number of days it takes to convert its investments in inventory and accounts receivable into cash.
However, when looking at a longer time frame, there has been a notable increase in the cash conversion cycle since October 31, 2021, where it was at 693.49 days. This suggests that there may have been challenges in efficiently managing the components of the cash conversion cycle during that period.
It is important for Deere & Company to continue monitoring and optimizing its cash conversion cycle to ensure that it remains at an optimal level, balancing the need to maintain adequate inventory levels and timely collection of accounts receivable while also managing payable obligations. Analyzing trends in the cash conversion cycle can provide insights into the company's working capital management efficiency and overall financial health.
Peer comparison
Oct 27, 2024