Deere & Company (DE)
Cash conversion cycle
| 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 | Nov 3, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 69.98 | 80.24 | 84.51 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 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 | 69.98 | 80.24 | 84.51 |
January 28, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 605.53 + — – —
= 605.53
The cash conversion cycle of Deere & Co. has shown fluctuations over the past eight quarters. The company's cash conversion cycle for Q1 2024 was 115.36 days, representing the time it takes for Deere & Co. to convert its investments in inventory and other resources into cash flows from sales. This is a decrease from the previous quarter, Q4 2023, which had a cash conversion cycle of 107.28 days.
Looking further back, in Q3 2023, the cash conversion cycle increased to 130.79 days compared to the previous quarter, indicating that Deere & Co. took longer to convert its assets into cash. A similar trend was observed in Q2 2023, with a cash conversion cycle of 133.89 days.
The most significant increase in the cash conversion cycle was noted in Q1 2023, where it reached 162.72 days, reflecting a longer period required by the company to recover its cash investments. However, there was a notable improvement in Q4 2022 with a decrease to 109.36 days, indicating a quicker turnaround in converting assets into cash.
Moreover, in Q3 2022 and Q2 2022, the cash conversion cycle was relatively high at 166.09 days and 173.91 days, respectively, suggesting challenges in efficiently managing working capital during those periods.
Overall, Deere & Co. has experienced fluctuations in its cash conversion cycle, indicating changes in its operational efficiency and management of working capital. It is essential for the company to focus on optimizing its inventory management, accounts receivable, and accounts payable processes to effectively improve its cash conversion cycle and enhance its overall financial performance.
Peer comparison
Jan 28, 2024