Fox Factory Holding Corp (FOXF)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 107.13 | 96.21 | 96.50 | 104.04 | 97.45 | 102.32 | 104.98 | 99.46 | 95.59 | 90.36 | 82.63 | 74.82 | 61.85 | 72.35 | 83.95 | 88.61 | 76.64 | 81.58 | 89.11 | 85.65 |
| Days of sales outstanding (DSO) | days | 43.16 | 35.75 | 38.83 | 44.04 | 45.80 | 46.40 | — | — | 39.91 | — | — | — | 49.67 | — | — | — | — | — | — | — |
| Number of days of payables | days | 30.01 | 24.95 | 26.98 | 37.06 | 36.45 | 38.03 | 48.61 | 49.58 | 34.15 | 57.44 | 61.05 | 54.68 | 44.97 | 54.09 | 36.72 | 50.15 | 32.89 | 40.32 | 46.26 | 52.19 |
| Cash conversion cycle | days | 120.29 | 107.01 | 108.36 | 111.01 | 106.80 | 110.69 | 56.37 | 49.88 | 101.34 | 32.92 | 21.58 | 20.14 | 66.55 | 18.26 | 47.23 | 38.45 | 43.75 | 41.26 | 42.85 | 33.47 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 107.13 + 43.16 – 30.01
= 120.29
The cash conversion cycle of Fox Factory Holding Corp has exhibited variability over the past few quarters. The cycle represents the time it takes for the company to convert its investment in inventory into cash from sales, taking into account the time it takes to sell inventory, collect receivables, and pay suppliers.
Looking at the trend, the cash conversion cycle increased from 42.85 days in Q1 2019 to 120.29 days in Q4 2023. This suggests that the company took longer to convert its investments in inventory into cash over the years, which may signal inefficiencies in managing working capital.
Notably, there are instances where the cash conversion cycle showed improvement, such as the significant decrease from 101.34 days in Q4 2021 to 32.92 days in Q1 2022. This improvement indicates that the company was able to streamline its inventory management and collection processes during that period.
Overall, the fluctuation in the cash conversion cycle of Fox Factory Holding Corp indicates potential areas for further analysis and operational improvement to optimize the management of working capital and enhance overall financial performance.
Peer comparison
Dec 31, 2023