Gen Digital Inc. (GEN)

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	—	—	51.91	—	—	72.90	11.05	12.06	18.55	144.32	24.44	47.65	50.10	52.14	54.56	229.81	234.93	273.75	262.10	410.39
Days of sales outstanding (DSO)	days	15.86	24.85	16.84	15.53	15.61	19.25	17.01	14.80	18.37	22.56	22.49	15.68	19.19	16.98	16.83	17.26	21.18	35.58	27.61	24.54
Number of days of payables	days	39.76	41.18	40.46	36.28	30.85	30.96	33.14	35.62	46.07	52.54	53.77	60.41	56.36	74.62	76.20	73.39	52.43	67.93	64.07	56.74
Cash conversion cycle	days	-23.90	-16.33	28.29	-20.75	-15.24	61.19	-5.08	-8.77	-9.15	114.33	-6.84	2.92	12.93	-5.50	-4.81	173.68	203.68	241.40	225.64	378.19

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 15.86 – 39.76
= -23.90

The cash conversion cycle of Gen Digital Inc. has shown significant fluctuations over the past few years. Starting from 378.19 days on June 30, 2020, the company experienced a gradual decrease in its cash conversion cycle, reaching negative values by September 2021. This suggests that the company was able to convert its investments into cash more quickly than the time it took to pay off its payables.

However, looking at the data from June 30, 2022, to March 31, 2025, the company's cash conversion cycle fluctuated between negative and positive values, indicating some inconsistencies in managing its working capital. Despite periods of improved efficiency in cash conversion, there were instances where the company struggled to maintain a negative cash conversion cycle, potentially indicating challenges in managing its receivables, inventory, and payables effectively.

Overall, it is important for Gen Digital Inc. to closely monitor its cash conversion cycle to ensure optimized working capital management and sustainable financial performance.