Jacobs Solutions Inc. (J)
Cash conversion cycle
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.14 |
| Days of sales outstanding (DSO) | days | 66.60 | 81.41 | 81.81 | 80.62 | 54.48 | 81.59 | 82.38 | 81.72 | 82.94 | 81.23 | 82.67 | 76.37 | 79.49 | 83.48 | 87.63 | 89.67 | 86.72 | 86.91 | 89.06 | 85.71 |
| Number of days of payables | days | 34.40 | 28.58 | 26.39 | 25.60 | 21.70 | 26.50 | 24.08 | 23.35 | 24.80 | 24.70 | 24.51 | 21.86 | 24.58 | 24.62 | 24.83 | 27.82 | 29.40 | 36.16 | 35.46 | 36.59 |
| Cash conversion cycle | days | 32.20 | 52.83 | 55.42 | 55.02 | 32.78 | 55.09 | 58.30 | 58.37 | 58.14 | 56.53 | 58.16 | 54.52 | 54.91 | 58.87 | 62.80 | 61.85 | 57.31 | 50.75 | 53.60 | 49.27 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 66.60 – 34.40
= 32.20
The cash conversion cycle of Jacobs Solutions Inc. has shown some variability over the past few quarters. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From December 2019 to March 2021, the cash conversion cycle showed a decreasing trend, reaching a low of 49.27 days. This indicates that Jacobs Solutions Inc. was able to efficiently manage its working capital during this period.
However, from March 2021 to June 2022, there was an increasing trend in the cash conversion cycle, peaking at 58.16 days in June 2022. This suggests that the company may have faced challenges in managing its working capital efficiently, leading to a longer cycle to convert investments into cash.
From June 2022 to September 2024, there was some fluctuation in the cash conversion cycle ranging from 32.20 days to 58.30 days. This variability could indicate shifts in the company's operations, sales, or inventory management practices.
Overall, Jacobs Solutions Inc. should continue to monitor and analyze its cash conversion cycle to ensure effective management of working capital and optimize its cash flow generation.
Peer comparison
Sep 30, 2024