Dynatrace Holdings LLC (DT)

Cash conversion cycle

		Mar 31, 2025	Dec 31, 2024	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
Days of inventory on hand (DOH)	days	—	—	—	—	—	129.34	126.91	129.79	135.97	122.68	114.79	120.16	132.17	132.02	128.71	134.86	140.01	188.46	176.31	111.50
Days of sales outstanding (DSO)	days	134.17	87.45	70.82	59.74	156.55	96.77	73.97	71.05	139.42	101.32	65.19	70.94	137.71	110.45	67.05	64.55	125.60	111.48	65.12	59.13
Number of days of payables	days	31.10	9.99	21.21	5.00	28.74	19.00	23.88	9.48	35.95	25.38	8.38	9.42	47.96	50.68	39.24	9.07	27.50	35.89	25.09	10.75
Cash conversion cycle	days	103.07	77.46	49.62	54.74	127.81	207.11	177.00	191.35	239.43	198.62	171.60	181.69	221.92	191.80	156.52	190.33	238.11	264.05	216.34	159.88

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 134.17 – 31.10
= 103.07

The cash conversion cycle of Dynatrace Holdings LLC has exhibited fluctuations over the provided time period. The cycle represents the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From June 30, 2020, to March 31, 2023, the cash conversion cycle experienced variability, reaching a peak of 264.05 days on December 31, 2020, and a low of 127.81 days on March 31, 2024. These fluctuations indicate potential inefficiencies in managing inventory, accounts receivable, and accounts payable during this period.

However, from June 30, 2024, the trend of the cash conversion cycle improved significantly, showing a consistent decrease from 54.74 days on June 30, 2024, to 103.07 days on March 31, 2025. This downward trend suggests that the company has been more effective in managing its working capital and converting resources into cash more efficiently during this latter period.

Overall, the company should seek to maintain a shorter cash conversion cycle to enhance liquidity, optimize working capital management, and improve overall financial performance. By continually monitoring and improving this cycle, Dynatrace Holdings LLC can enhance its operational efficiency and financial health.