Gen Digital Inc. (GEN)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jul 5, 2019
Days of inventory on hand (DOH)	days	—	72.90	11.05	12.06	19.21	21.90	25.64	50.10	50.10	52.14	54.56	229.81	234.93	273.75	262.10	413.60	250.76	192.06	6,023.78	—
Days of sales outstanding (DSO)	days	32.27	97.89	23.48	23.57	39.96	56.25	52.93	—	20.23	24.80	—	—	30.48	—	—	—	—	—	—	—
Number of days of payables	days	32.95	30.96	33.14	35.62	47.72	54.75	56.42	63.52	56.36	74.62	76.20	73.39	52.43	67.93	64.07	57.18	80.80	136.44	102.58	110.48
Cash conversion cycle	days	-0.69	139.83	1.39	0.01	11.45	23.40	22.15	-13.42	13.97	2.33	-21.64	156.43	212.98	205.82	198.03	356.42	169.96	55.62	5,921.21	-110.48

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 32.27 – 32.95
= -0.69

The cash conversion cycle of Gen Digital Inc. has fluctuated significantly over the past few quarters. It reached a peak of 5,921.21 days at the end of September 2019, which is an alarming sign indicating prolonged periods between the company's cash outflows for inventory and cash inflows from sales.

Since then, there has been a noticeable improvement in the company's cash conversion cycle, with the most recent data showing a negative value of -0.69 days at the end of March 2024. A negative cash conversion cycle indicates that the company is able to generate cash from sales before having to pay its suppliers, which is usually a favorable position.

Overall, it appears that Gen Digital Inc. has made significant progress in managing its cash conversion cycle efficiently, as seen from the decreasing trend in the cycle duration over the reporting periods. This improvement suggests enhanced working capital management and operational efficiency within the company. Continued monitoring of the cash conversion cycle will be essential to ensure sustainable financial health and liquidity for Gen Digital Inc.