National Beverage Corp (FIZZ)
Cash conversion cycle
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | May 1, 2021 | May 2, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 40.46 | 44.01 | 52.36 | 40.10 | 36.76 |
| Days of sales outstanding (DSO) | days | 31.50 | 32.65 | 30.02 | 29.43 | 30.98 |
| Number of days of payables | days | 37.44 | 40.02 | 48.30 | 49.79 | 43.07 |
| Cash conversion cycle | days | 34.52 | 36.63 | 34.08 | 19.74 | 24.68 |
April 27, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 40.46 + 31.50 – 37.44
= 34.52
The cash conversion cycle of National Beverage Corp has fluctuated over the past five years. In the most recent fiscal year ending April 27, 2024, the company's cash conversion cycle was 34.52 days, slightly improved from the prior year's 36.63 days. This indicates that National Beverage Corp takes around 34.52 days to convert its investments in inventory and other resources into cash from sales.
Comparing the data to prior years, the cash conversion cycle was relatively consistent in 2022 and 2023, around 34 days. However, there was a significant increase in the cash conversion cycle in 2021 to 19.74 days, indicating the company was able to more efficiently manage its working capital and convert it into cash. This was followed by a slight increase in the cycle in 2020 to 24.68 days.
Overall, a lower cash conversion cycle signifies that the company is efficient in managing its inventory, accounts receivable, and accounts payable, thus optimizing its working capital and cash flow. However, fluctuations in the cycle over the years may indicate changes in the company's operational efficiency and liquidity management. Further analysis of the underlying factors contributing to these fluctuations would provide deeper insights into National Beverage Corp's financial performance.
Peer comparison
Apr 27, 2024