Fox Factory Holding Corp (FOXF)
Cash conversion cycle
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 149.66 | 150.02 | 146.35 | 132.60 | 135.81 | 120.11 | 119.51 | 128.39 | 119.48 | 125.72 | 128.96 | 122.14 | 117.85 | 110.85 | 101.44 | 92.60 | 77.18 | 90.32 | 104.49 | 108.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 149.66 | 150.02 | 146.35 | 132.60 | 135.81 | 120.11 | 119.51 | 128.39 | 119.48 | 125.72 | 128.96 | 122.14 | 117.85 | 110.85 | 101.44 | 92.60 | 77.18 | 90.32 | 104.49 | 108.76 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 149.66 + — – —
= 149.66
The cash conversion cycle of Fox Factory Holding Corp has shown some fluctuations over the analyzed period. The company's cash conversion cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has ranged between around 77 days to 150 days.
From March 31, 2020, to December 31, 2024, the cash conversion cycle initially decreased from 108.76 days to 77.18 days by December 31, 2020, indicating an improvement in the company's efficiency in managing its working capital. However, the trend reversed in the subsequent quarters, with the cycle lengthening to 149.66 days by December 31, 2024.
The cash conversion cycle exceeding 100 days in some periods suggests that Fox Factory Holding Corp may be facing challenges in efficiently managing its inventory, receivables, and payables. A longer cash conversion cycle could indicate inefficiencies in inventory management, slow collection of receivables, or delayed payment to suppliers, which can tie up capital and impact liquidity.
Overall, a downward trend in the cash conversion cycle is generally favorable as it indicates the company is improving its working capital efficiency. On the other hand, an increasing trend may indicate potential liquidity concerns or operational inefficiencies that need to be addressed to enhance financial performance and cash flow management.
Peer comparison
Dec 31, 2024