Jacobs Solutions Inc. (J)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 88.95 | 54.18 | 82.39 | 79.49 | 85.52 |
| Number of days of payables | days | 34.02 | 21.63 | 24.70 | 24.47 | 29.17 |
| Cash conversion cycle | days | 54.93 | 32.55 | 57.69 | 55.02 | 56.34 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 88.95 – 34.02
= 54.93
The cash conversion cycle of Jacobs Solutions Inc. has shown some fluctuations over the past five years. In 2024, the company's cash conversion cycle stands at 54.93 days, indicating that it takes approximately 55 days for the company to convert its resource inputs into cash flows. This represents an increase compared to the previous year, where the cycle was only 32.55 days.
In 2022, the cash conversion cycle was 57.69 days, slightly higher than in 2021, which was 55.02 days. The company experienced a decrease in its cash conversion cycle in 2020, where it stood at 56.34 days.
Overall, the trend in Jacobs Solutions Inc.'s cash conversion cycle shows some variability, with fluctuations in the time it takes for the company to convert its investments in resources into cash inflows. Further analysis of the company's operations and working capital management may be necessary to understand the reasons behind these fluctuations and to identify potential areas for improvement.
Peer comparison
Sep 30, 2024