Walt Disney Company (DIS)

Cash conversion cycle

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Days of inventory on hand (DOH)	days	35.93	34.66	34.22	29.89	28.40
Days of sales outstanding (DSO)	days	50.85	50.62	55.83	72.37	70.94
Number of days of payables	days	262.90	267.08	318.31	367.27	236.50
Cash conversion cycle	days	-176.12	-181.80	-228.27	-265.01	-137.16

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 35.93 + 50.85 – 262.90
= -176.12

The cash conversion cycle for Walt Disney Company has shown a consistent improvement over the past five years, reflecting the company's efficiency in managing its working capital. The negative values indicate that the company is able to convert its investments in inventories and receivables into cash relatively quickly.

In particular:
- In 2024, the cash conversion cycle was -176.12 days, an improvement from the previous year.
- In 2023, the cycle was -181.80 days, indicating a further reduction in the time it takes for Disney to convert its resources into cash.
- In 2022, the cycle was -228.27 days, showing a significant progress in the efficiency of working capital management.
- In 2021, the cycle was -265.01 days, reflecting a remarkable reduction compared to the previous year.
- In 2020, the cycle was -137.16 days, demonstrating strong performance in converting investments into cash.

Overall, Walt Disney Company has been successful in optimizing its cash conversion cycle, which is a positive indicator of its liquidity management and operational efficiency.