DocuSign Inc (DOCU)
Cash conversion cycle
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 52.67 | 58.20 | 75.18 | 76.61 | 84.94 |
| Number of days of payables | days | 5.06 | 3.14 | 4.15 | 10.67 | 9.88 |
| Cash conversion cycle | days | 47.61 | 55.06 | 71.03 | 65.94 | 75.07 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 52.67 – 5.06
= 47.61
DocuSign Inc's cash conversion cycle has shown a decreasing trend over the past five years, indicating an improvement in efficiency in managing its cash flows. From January 31, 2021, to January 31, 2025, the cash conversion cycle decreased from 75.07 days to 47.61 days.
A shorter cash conversion cycle implies that the company is able to convert its investments in inventory and accounts receivable into cash more rapidly. This can be a positive sign as it may suggest strong sales, efficient inventory management, and effective accounts receivable collections.
Overall, the decreasing trend in DocuSign Inc's cash conversion cycle shows an improvement in its working capital management efficiency over the years, which can positively impact the company's liquidity and financial performance.
Peer comparison
Jan 31, 2025