Intuit Inc (INTU)
Cash conversion cycle
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 26.86 | — | — | — |
| Days of sales outstanding (DSO) | days | 11.99 | 11.03 | 30.06 | 24.74 | 9.55 |
| Number of days of payables | days | 39.98 | 40.80 | 48.54 | 59.50 | 40.20 |
| Cash conversion cycle | days | -27.99 | -2.91 | -18.48 | -34.75 | -30.65 |
July 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 11.99 – 39.98
= -27.99
The cash conversion cycle for Intuit Inc has fluctuated over the past five years. In the most recent fiscal year, ending July 31, 2024, the company's cash conversion cycle was -27.99 days, indicating that it takes approximately 27.99 days for Intuit to convert its investments in inventory and accounts receivable into cash.
Compared to the previous year, the cash conversion cycle has increased significantly from -2.91 days to -27.99 days. This uptick suggests that Intuit may be taking longer to convert its operating cycle into cash, which could potentially indicate inefficiencies in managing inventory or collecting receivables.
Looking further back, the cash conversion cycle in the fiscal year ending July 31, 2023, was -18.48 days, and in the fiscal years ending July 31, 2022 and July 31, 2021, it was -34.75 days and -30.65 days, respectively. These numbers indicate that Intuit has historically been efficient in converting its operating cycle into cash.
Overall, Intuit's cash conversion cycle has shown some variability over the years, with the most recent year experiencing a notable increase compared to previous periods. It will be important for the company to analyze the reasons behind this change and implement strategies to improve efficiency in converting its operating activities into cash.
Peer comparison
Jul 31, 2024