Walt Disney Company (DIS)

Cash conversion cycle

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	35.93	36.85	31.82	34.94	34.66	33.90	36.85	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	50.85	52.57	49.21	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	262.90	—	—	—	267.08	—	—	—	318.31	—	—	—	367.25	—	—	—	236.63	—	—	—
Cash conversion cycle	days	-176.12	89.42	81.02	92.87	-181.80	88.40	90.44	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

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 of Walt Disney Company has shown fluctuations over the past several quarters.

In the most recent quarter, ending September 30, 2024, the company's cash conversion cycle was reported at -176.12 days. This indicates that Walt Disney Company is able to turn its investments in inventory and accounts receivable into cash more efficiently, essentially operating at a negative cash conversion cycle. This suggests that the company is able to generate cash before having to pay its suppliers, which can be seen as a positive sign for its liquidity and working capital management.

Looking back at the trend, we see that the cash conversion cycle has been volatile with both positive and negative figures in recent quarters. For instance, in the quarter ending December 31, 2021, the cash conversion cycle was -264.99 days, showing a longer period compared to the latest quarter, which might raise concerns about the company's working capital efficiency during that period.

Overall, while the company has occasionally experienced longer cash conversion cycles, the recent negative cycle indicates that Walt Disney Company has been adept at managing its working capital efficiently. Further monitoring and analysis of the trend in the cash conversion cycle could provide valuable insights into the company's operational efficiency and financial performance.