Dynatrace Holdings LLC (DT)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	33.87	33.00	33.82	35.11	31.42	28.91	29.62	32.28	32.07	31.35	33.06	34.56	47.36	44.24	24.01	22.79
Days of sales outstanding (DSO)	days	152.34	94.78	72.96	70.50	140.26	101.11	65.03	70.76	153.29	110.14	66.83	64.27	146.51	115.64	90.23	85.45	135.65
Number of days of payables	days	7.70	4.98	6.21	2.47	9.28	6.50	2.11	2.32	11.71	12.31	9.56	2.22	6.79	9.02	6.29	2.31	6.58
Cash conversion cycle	days	144.64	123.67	99.75	101.86	166.08	126.03	91.83	98.07	173.85	129.90	88.62	95.10	174.28	153.98	128.18	107.15	151.86

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 152.34 – 7.70
= 144.64

The cash conversion cycle of Dynatrace Holdings LLC has shown fluctuation over the past quarters. A decreasing trend in the cycle indicates improvements in managing the company's cash flow and working capital efficiency.

From December 2019 to December 2020, there was a significant increase in the cash conversion cycle from 151.86 days to 174.28 days, indicating a longer time taken to turn resources into cash. However, there was a notable improvement observed from December 2020 to September 2021, with the cycle reducing to 88.62 days, reflecting enhanced operational efficiency.

Subsequently, the cycle increased to 129.90 days by the end of March 2022, which could suggest challenges in managing working capital or delays in cash inflows. The cycle continued to deteriorate until March 2023, where it reached 166.08 days, signifying potential issues in converting sales into cash effectively.

The trend reversed in June 2023, showing a decline in the cash conversion cycle to 101.86 days, and further improvement was seen in December 2023, with the cycle standing at 123.67 days. The most recent data for March 2024 displayed a further decrease to 144.64 days, indicating a more efficient conversion of inventory and receivables into cash.

Overall, Dynatrace Holdings LLC should continue to monitor and manage its cash conversion cycle to ensure optimal working capital efficiency and cash flow management.