DocuSign Inc (DOCU)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.08 | 0.09 | 0.10 |
| Days of sales outstanding (DSO) | days | 52.68 | 37.67 | 39.62 | 39.84 | 58.20 | 48.69 | 57.18 | 57.77 | 75.18 | 63.46 | 53.17 | 49.46 | 76.61 | 58.31 | 59.59 | 58.27 | 84.94 | 75.30 | 72.35 | 78.45 |
| Number of days of payables | days | 5.07 | 2.99 | 1.34 | 2.92 | 3.14 | 2.46 | 0.96 | 2.44 | 4.15 | 8.14 | 8.10 | 5.01 | 10.61 | 10.45 | 7.73 | 3.64 | 9.88 | 9.26 | 10.43 | 7.37 |
| Cash conversion cycle | days | 47.60 | 34.68 | 38.27 | 36.92 | 55.06 | 46.23 | 56.22 | 55.33 | 71.03 | 55.31 | 45.07 | 44.45 | 66.00 | 47.87 | 51.86 | 54.63 | 75.06 | 66.12 | 62.01 | 71.17 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 52.68 – 5.07
= 47.60
The cash conversion cycle of DocuSign Inc has shown fluctuations over the analyzed periods. It represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From April 30, 2020, to April 30, 2023, there was a general decreasing trend in the cash conversion cycle, starting at 71.17 days and reaching a low of 36.92 days. This can indicate improvements in managing inventory, collecting receivables, and paying suppliers more efficiently.
However, from April 30, 2023, to January 31, 2025, there was some variability in the cycle, with peaks and troughs observed. The cycle increased to 55.33 days by April 30, 2023, before declining again.
The lowest point in the cash conversion cycle was noted on October 31, 2024, at 34.68 days, suggesting a very efficient utilization of cash resources, possibly due to improved inventory management or accelerated collection of receivables.
Overall, a decreasing trend in the cash conversion cycle is typically a positive indicator, as it reflects the company's ability to generate cash quickly from its operating activities. However, it is essential to monitor fluctuations in the cycle to ensure sustained efficiency in managing working capital.
Peer comparison
Jan 31, 2025