Walt Disney Company (DIS)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	19.97	19.92	19.39	20.07	35.90	34.22	31.90	30.10	28.98	29.88	32.69	26.51	27.76	28.41	26.42	31.63	26.33
Days of sales outstanding (DSO)	days	57.93	50.62	54.50	53.59	60.50	55.83	61.59	65.48	74.42	72.37	76.66	78.40	84.41	70.94	66.00	67.76	83.02
Number of days of payables	days	—	153.48	—	—	—	318.31	—	—	—	367.25	—	—	—	236.63	—	—	—
Cash conversion cycle	days	77.90	-82.93	73.90	73.66	96.41	-228.27	93.49	95.58	103.40	-264.99	109.34	104.91	112.16	-137.28	92.42	99.38	109.35

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.97 + 57.93 – —
= 77.90

The cash conversion cycle of Walt Disney Company fluctuated over the past few quarters. The company's cash conversion cycle represents the time it takes for Disney to convert its investments in raw materials into cash received from sales of its products or services.

In the most recent quarter ending December 31, 2023, the cash conversion cycle was 77.90 days, indicating that it takes around 77.90 days for Disney to convert its investments in inventory into cash receipts from customers.

A notable anomaly was observed in the quarter ending September 30, 2023, with a negative cash conversion cycle of -82.93 days, implying that Disney was able to receive cash from customers before paying for its raw materials and inventory. This may be attributed to efficient collection of receivables or extended payables terms from suppliers.

Over the past few quarters, the company has seen fluctuations in its cash conversion cycle, with some quarters showing negative cycles, indicating efficient management of working capital, and other quarters reflecting positive cycles, signifying a longer duration to convert investments into cash.

Overall, monitoring the cash conversion cycle can provide insights into Disney's operational efficiency, liquidity, and working capital management practices. Further analysis and comparison with industry benchmarks would help in determining the effectiveness of Disney's working capital strategies.