Deere & Company (DE)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 131.77 | 148.19 | 128.99 | 143.10 | 147.98 | 163.90 | 159.68 | 165.47 | 147.35 | 134.46 | 128.23 | 115.92 | 165.05 | 118.36 | 174.89 | 162.67 | 137.49 | 146.54 | 127.60 | 189.53 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 131.77 | 148.19 | 128.99 | 143.10 | 147.98 | 163.90 | 159.68 | 165.47 | 147.35 | 134.46 | 128.23 | 115.92 | 165.05 | 118.36 | 174.89 | 162.67 | 137.49 | 146.54 | 127.60 | 189.53 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 131.77 + — – —
= 131.77
The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash inflows from sales. For Deere & Company, the cash conversion cycle fluctuated over the observed periods, ranging from a high of 189.53 days on May 1, 2022, to a low of 115.92 days on July 31, 2023.
Generally, a lower cash conversion cycle indicates that the company is able to efficiently manage its working capital, effectively turning its investments into cash faster. On the other hand, a higher cash conversion cycle suggests that the company may be facing challenges in converting its resources into cash, possibly indicating inefficiencies in inventory management or slow sales turnover.
Deere & Company's cash conversion cycle exhibited some volatility over the periods, but it seems to have improved towards the end of the observed timeframe, with a decreasing trend from April 2023 to January 2025. This could signal better working capital management or more effective inventory turnover in recent periods.
Analyzing the cash conversion cycle alongside other financial metrics and industry benchmarks can provide a more comprehensive view of Deere & Company's operational efficiency, liquidity, and overall financial health.
Peer comparison
Jan 31, 2025