Intuit Inc (INTU)
Cash conversion cycle
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 212.35 | 161.24 | 26.86 | 24.99 | 23.55 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 11.99 | 0.09 | 3.05 | 0.42 | 11.03 | 0.05 | 1.80 | 28.55 | 30.06 | 21.14 | 36.17 | 18.46 | 24.74 | 22.94 | 29.26 | 5.96 | 9.55 | 11.98 | 33.54 | 10.00 |
| Number of days of payables | days | 39.98 | 53.35 | 49.42 | 40.23 | 40.80 | 59.31 | 50.79 | 41.29 | 48.54 | 60.53 | 67.34 | 46.57 | 59.34 | 73.96 | 68.54 | 37.88 | 45.36 | 58.09 | 69.05 | 42.43 |
| Cash conversion cycle | days | -27.99 | -53.25 | 165.97 | 121.43 | -2.91 | -34.27 | -25.44 | -12.74 | -18.48 | -39.39 | -31.17 | -28.10 | -34.60 | -51.02 | -39.29 | -31.91 | -35.81 | -46.11 | -35.51 | -32.42 |
July 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 11.99 – 39.98
= -27.99
The cash conversion cycle of Intuit Inc has fluctuated over the past few years, indicating changes in its operating efficiency and liquidity management. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.
In the recent quarter of July 31, 2024, Intuit Inc reported a negative cash conversion cycle of -27.99 days, reflecting that the company is efficient in converting its inventory and accounts receivable into cash. This suggests that the company is able to generate cash quickly from its operations.
However, the cash conversion cycle was significantly longer in previous quarters, such as January 31, 2024, where it stood at 165.97 days. This indicates that Intuit Inc took much longer to convert its investments into cash during that period, which could imply potential inefficiencies in managing working capital.
Overall, the trend in the cash conversion cycle for Intuit Inc has shown fluctuations, with some periods of strong efficiency and others indicating room for improvement in managing its working capital effectively. Monitoring and optimizing the cash conversion cycle is crucial for the company to ensure it maintains healthy liquidity and operational efficiency.
Peer comparison
Jul 31, 2024