Jack In The Box Inc (JACK)

Cash conversion cycle

		Jan 21, 2024	Sep 30, 2023	Jul 9, 2023	Apr 16, 2023	Jan 22, 2023	Sep 30, 2022	Jul 10, 2022	Apr 17, 2022	Jan 23, 2022	Sep 30, 2021	Jun 30, 2021	Apr 11, 2021	Jan 17, 2021	Sep 30, 2020	Jul 5, 2020	Apr 12, 2020	Jan 19, 2020	Sep 30, 2019	Jul 7, 2019	Apr 14, 2019
Days of inventory on hand (DOH)	days	1.92	1.63	1.93	2.18	2.18	2.64	3.76	4.73	2.49	2.25	2.18	2.30	2.68	2.61	4.92	4.26	3.22	2.48	2.06	2.08
Days of sales outstanding (DSO)	days	13.97	21.50	17.54	20.46	12.60	25.81	21.32	15.76	17.53	23.72	22.24	28.95	18.97	28.02	32.62	25.03	20.22	17.38	23.22	29.37
Number of days of payables	days	30.67	35.50	21.27	24.12	16.16	33.26	32.46	39.27	20.80	28.03	35.46	26.30	21.48	44.86	70.58	111.99	37.27	51.74	54.47	26.79
Cash conversion cycle	days	-14.78	-12.38	-1.81	-1.47	-1.38	-4.81	-7.39	-18.78	-0.79	-2.06	-11.04	4.95	0.18	-14.23	-33.04	-82.70	-13.82	-31.88	-29.19	4.66

January 21, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.92 + 13.97 – 30.67
= -14.78

The cash conversion cycle for Jack In The Box, Inc. has shown fluctuations over the past few quarters. In Q4 2023, the cycle was at its highest, standing at 21.50 days, indicating a longer period for the company to convert its investments in inventory and other resources into cash.

The cycle decreased in Q1 2024 to 13.97 days, showing an improvement in the efficiency of the company's cash management. This suggests that Jack In The Box, Inc. was able to shorten the time it takes to convert its resources into cash during that period.

Overall, the trend of the cash conversion cycle seems to be somewhat volatile, with periods of both improvement and deterioration. Analyzing this metric in conjunction with other financial indicators can provide a more holistic view of Jack In The Box, Inc.'s operational efficiency and liquidity management.