Deere & Company (DE)
Cash conversion cycle
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.70 | 449.94 | 78.50 | 575.54 | 87.22 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 84.70 | 449.94 | 78.50 | 575.54 | 87.22 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.70 + — – —
= 84.70
The cash conversion cycle of Deere & Company has shown significant fluctuations over the past few years.
As of October 31, 2022, the company's cash conversion cycle was 87.22 days. This indicates that it took Deere approximately 87 days to convert its investments in inventory and other resources into cash inflows from sales.
By October 29, 2023, the cash conversion cycle had extended significantly to 575.54 days, suggesting a drastic delay in the conversion of resources to cash. This prolonged cycle may be attributed to challenges in managing inventory levels, collection of receivables, or efficient payment of payables.
However, by October 31, 2023, the cycle reduced sharply to 78.50 days, indicating a swift improvement in the company's cash conversion efficiency. This could reflect proactive measures taken by Deere to streamline its operating cycle and enhance liquidity.
Subsequently, as of October 27, 2024, the cash conversion cycle increased again to 449.94 days, signaling a potential return to challenges in working capital management. Such fluctuations could impact the company's cash flow and overall financial health.
Finally, by October 31, 2024, the cycle shortened to 84.70 days, indicating a positive trend towards improving the company's cash conversion efficiency once more. Continued focus on optimizing inventory, receivables, and payables management will be essential for Deere & Company to maintain a healthy cash conversion cycle and sustain its financial performance.
Peer comparison
Oct 31, 2024