National Beverage Corp (FIZZ)
Cash conversion cycle
| Apr 30, 2025 | Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 41.01 | 40.46 | 40.46 | 44.01 | 44.01 |
| Days of sales outstanding (DSO) | days | 31.65 | 31.50 | 31.50 | 32.65 | 32.65 |
| Number of days of payables | days | 39.73 | 37.44 | 37.44 | 40.02 | 40.02 |
| Cash conversion cycle | days | 32.93 | 34.52 | 34.52 | 36.63 | 36.63 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 41.01 + 31.65 – 39.73
= 32.93
The analysis of National Beverage Corp's cash conversion cycle (CCC) over the specified periods indicates a progressive improvement in the company's operational efficiency concerning working capital management. As of April 29 and April 30, 2023, the CCC was recorded at 36.63 days, reflecting the duration it takes the company to convert its investments in inventory and accounts receivable into cash, net of its accounts payable period.
By April 27 and April 30, 2024, this metric decreased to 34.52 days, representing a reduction of approximately 2.11 days from the previous year. This decline suggests that National Beverage Corp has been able to expedite its cash collection and inventory turnover processes or optimize its payment cycle, thereby shortening the period between outlay and inflow of cash.
The trend continued into April 30, 2025, with the CCC further decreasing to 32.93 days. This consistent year-over-year decrease of about 1.59 days demonstrates ongoing efforts to enhance cash flow efficiency. A shorter cash conversion cycle generally indicates improved liquidity and operational performance, as the company requires less time to convert resources into cash.
Overall, these changes reflect a positive trajectory in the company's liquidity management practices, likely resulting in improved working capital management and enhanced ability to fund operations and strategic initiatives without the need for external financing.
Peer comparison
Apr 30, 2025