Jacobs Solutions Inc. (J)
Cash conversion cycle
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 0.03 |
| Days of sales outstanding (DSO) | days | 79.31 | 82.39 | 79.49 | 85.52 | 81.39 |
| Number of days of payables | days | 26.82 | 24.70 | 24.47 | 29.17 | 38.16 |
| Cash conversion cycle | days | 52.50 | 57.69 | 55.02 | 56.34 | 43.26 |
September 30, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 79.31 – 26.82
= 52.50
Jacobs Solutions Inc.'s cash conversion cycle has shown some variability in recent years. As of September 30, 2023, the company's cash conversion cycle was 52.50 days, indicating that it takes approximately 52.50 days for the company to convert its investments in inventory and other resources into cash inflows from sales.
Comparing this to previous years, there was a slight improvement in the cash conversion cycle from 2022 to 2023. However, it is worth noting that the cash conversion cycle was lower in 2019 at 43.26 days, suggesting that the company was more efficient in managing its cash flow that year.
Overall, the trend in the cash conversion cycle for Jacobs Solutions Inc. has been relatively stable over the past five years, with minor fluctuations. The company should continue to monitor and potentially optimize its cash conversion cycle to improve efficiency in managing its working capital and liquidity.
Peer comparison
Sep 30, 2023