DXC Technology Co (DXC)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	—	—	18.50	18.76	18.84
Days of sales outstanding (DSO)	days	84.28	86.88	87.04	86.49	85.56
Number of days of payables	days	20.51	29.20	25.38	24.17	23.68
Cash conversion cycle	days	63.77	57.68	80.16	81.08	80.72

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 84.28 – 20.51
= 63.77

The cash conversion cycle of DXC Technology Co has shown fluctuations over the years based on the provided data. As of March 31, 2021, the cash conversion cycle was 80.72 days, which slightly increased to 81.08 days by March 31, 2022. However, there was a slight improvement by March 31, 2023, with the cycle decreasing to 80.16 days.

The most notable change occurred by March 31, 2024, where there was a significant decrease in the cash conversion cycle to 57.68 days, indicating an improvement in the company's efficiency in converting its investments in inventory and receivables into cash.

By March 31, 2025, the cash conversion cycle increased to 63.77 days, reflecting a longer period required to convert investments back into cash compared to the previous year but still lower than the numbers observed in the earlier years.

Overall, the trend in the cash conversion cycle of DXC Technology Co shows variability, with improvements in some years and slight deteriorations in others. Monitoring this cycle is crucial for assessing the company's efficiency in managing its working capital and cash flow conversion processes.