Jack In The Box Inc (JACK)

Cash conversion cycle

		Sep 30, 2024	Jul 7, 2024	Apr 14, 2024	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
Days of inventory on hand (DOH)	days	1.95	1.96	1.83	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
Days of sales outstanding (DSO)	days	19.41	19.74	23.10	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
Number of days of payables	days	34.52	32.43	37.14	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
Cash conversion cycle	days	-13.16	-10.74	-12.21	-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

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.95 + 19.41 – 34.52
= -13.16

The cash conversion cycle of Jack In The Box Inc fluctuated over the past few quarters, indicating variations in its efficiency of managing cash flow.

The company's cash conversion cycle was negative for most periods, suggesting it generally takes less time to convert its inventory and accounts receivable into cash compared to paying its accounts payable. This may indicate effective management of working capital, as the company is able to collect payments from customers and settle its debts relatively quickly.

However, there are instances where the cash conversion cycle was positive, primarily in the quarters ending Sep 30, 2020, and Jan 17, 2021, potentially indicating inefficiencies in managing working capital during those periods.

Overall, a negative cash conversion cycle implies that Jack In The Box Inc is efficiently managing its cash flow and working capital, enabling it to operate smoothly without facing significant liquidity issues. Monitoring the trend of the cash conversion cycle can provide insights into the company's financial health and operational efficiency over time.