Jack In The Box Inc (JACK)

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	1.63	2.64	2.25	1.90	1.94
Days of sales outstanding (DSO)	days	21.50	25.81	23.72	28.02	17.38
Number of days of payables	days	35.52	33.26	28.03	32.74	40.56
Cash conversion cycle	days	-12.39	-4.81	-2.06	-2.82	-21.24

September 30, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.63 + 21.50 – 35.52
= -12.39

Jack In The Box Inc has shown fluctuations in its cash conversion cycle over the past five years. The company's cash conversion cycle was -12.39 days in 2023, compared to -4.81 days in 2022, -2.06 days in 2021, -2.82 days in 2020, and -21.24 days in 2019.

A negative cash conversion cycle indicates that the company is efficiently managing its working capital. Jack In The Box Inc has seen an improvement in its cash conversion cycle since 2019, with the cycle becoming more negative each year up until 2023.

Overall, Jack In The Box Inc has been able to convert its inventory and accounts receivable into cash quickly, resulting in a negative cash conversion cycle. This efficient management of working capital can help the company maintain liquidity and generate more cash flow for its operations.