Deere & Company (DE)
Cash conversion cycle
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 469.78 | 512.13 | 579.48 | 605.53 | 582.97 | 662.41 | 708.91 | 799.31 | 682.67 | 881.43 | 904.49 | 822.81 | 695.83 | 231.65 | 136.70 | 96.13 | 65.29 | 72.79 | 76.70 | 76.65 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 469.78 | 512.13 | 579.48 | 605.53 | 582.97 | 662.41 | 708.91 | 799.31 | 682.67 | 881.43 | 904.49 | 822.81 | 695.83 | 231.65 | 136.70 | 96.13 | 65.29 | 72.79 | 76.70 | 76.65 |
October 27, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 469.78 + — – —
= 469.78
The cash conversion cycle of Deere & Company has fluctuated over the past few periods, indicating varying efficiency in managing its working capital. The cycle represents the time it takes for the company to convert its investments in inventory and accounts receivable into cash received from sales.
In the most recent period, ending on October 27, 2024, the cash conversion cycle stood at 469.78 days, showing an improvement from the previous quarter. This suggests that Deere & Company was able to better manage its inventory and collect receivables more effectively, resulting in a quicker conversion into cash.
However, looking back over the data, the cash conversion cycle has shown a general upward trend since early 2022, reaching its peak at 904.49 days in the quarter ending July 31, 2022. This extended cycle indicates that the company may have faced challenges in efficiently managing its working capital during that time, potentially leading to increased investment in inventory and delays in collecting receivables.
Overall, Deere & Company should focus on optimizing its inventory management and accounts receivable collection processes to reduce its cash conversion cycle and improve liquidity. Monitoring and analyzing these cycles over time can help identify trends and areas for improvement in working capital management.
Peer comparison
Oct 27, 2024