Grocery Outlet Holding Corp (GO)
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 | 47.18 | 48.83 | 46.37 | 47.35 | 46.83 | 41.93 | 44.36 | 44.93 | 49.09 | 50.96 | 51.17 | 49.55 | 47.19 | 41.69 | 42.20 | 41.14 | 41.40 | 44.92 | 42.27 | 36.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 47.18 | 48.83 | 46.37 | 47.35 | 46.83 | 41.93 | 44.36 | 44.93 | 49.09 | 50.96 | 51.17 | 49.55 | 47.19 | 41.69 | 42.20 | 41.14 | 41.40 | 44.92 | 42.27 | 36.63 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.18 + — – —
= 47.18
The cash conversion cycle for Grocery Outlet Holding Corp has shown some fluctuations over the analyzed period. The company's cash conversion cycle ranged from around 36 to 51 days. It indicates the time taken by Grocery Outlet to convert its investments in inventory into cash from sales and back to cash.
The trend of the cash conversion cycle shows that the company's operating cycle has increased slightly over the years, which may suggest inefficiencies in managing its working capital. It peaked at around 51 days in June 30, 2022, but then decreased slightly to 46 days by June 30, 2024. Generally, a shorter cash conversion cycle is preferred as it implies faster cash flows and better working capital management.
It is necessary for Grocery Outlet Holding Corp to analyze the underlying factors contributing to the changes in its cash conversion cycle, such as inventory management, accounts receivable collection, and accounts payable payment terms. By optimizing these components, the company can work towards improving its cash conversion efficiency and overall financial performance.
Peer comparison
Dec 31, 2024