DXC Technology Co (DXC)

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	—	—	—	—	—	18.88	18.73	21.57	18.50	38.49	20.06	19.97	18.76	16.74	14.72	17.54	18.84	14.96	17.99	16.33
Days of sales outstanding (DSO)	days	84.28	76.94	85.43	81.26	86.88	82.41	81.79	84.62	87.04	84.91	82.33	85.15	86.49	80.49	82.81	85.76	85.56	83.01	81.03	81.24
Number of days of payables	days	19.85	19.33	23.81	22.31	28.26	29.59	20.71	23.19	25.38	26.66	25.97	23.48	24.17	21.18	19.96	22.81	23.68	21.75	33.19	37.26
Cash conversion cycle	days	64.43	57.62	61.62	58.95	58.61	71.69	79.82	83.00	80.16	96.74	76.42	81.63	81.08	76.06	77.57	80.49	80.72	76.22	65.83	60.31

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 84.28 – 19.85
= 64.43

The cash conversion cycle (CCC) of DXC Technology Co has shown some fluctuations over the quarters analyzed. From June 30, 2020, to December 31, 2020, the CCC increased, indicating a longer time taken to convert non-cash working capital into cash. This trend continued until June 30, 2021, where the CCC peaked at 80.49 days.

However, from September 30, 2021, to December 31, 2024, the CCC showed a decreasing trend, reaching its lowest point of 57.62 days by the end of December 31, 2024. This reduction indicates improvements in efficiency in managing cash conversion processes.

The increase in the CCC from December 31, 2024, to March 31, 2025, could be a temporary fluctuation, and it is essential for stakeholders to monitor this trend in subsequent periods to assess if it is a consistent pattern or anomaly.

Overall, the analysis of DXC Technology Co's cash conversion cycle highlights the company's ability to efficiently manage its working capital and convert it into cash, which is crucial for financial health and operations.