John B Sanfilippo & Son Inc (JBSS)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.14 | 80.10 | 98.87 | 80.21 | 89.17 |
| Days of sales outstanding (DSO) | days | 29.07 | 26.56 | 26.58 | 28.20 | 23.62 |
| Number of days of payables | days | 22.87 | 19.77 | 23.03 | 26.48 | 18.82 |
| Cash conversion cycle | days | 90.34 | 86.89 | 102.42 | 81.93 | 93.97 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.14 + 29.07 – 22.87
= 90.34
The cash conversion cycle (CCC) measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter CCC indicates more efficient management of working capital.
In the case of John B Sanfilippo & Son Inc, the trend in the CCC over the past five years has been somewhat fluctuating. In the most recent fiscal year ending June 30, 2024, the CCC increased to 90.34 days from 86.89 days in the previous year. This suggests that the company took slightly longer to convert its investments into cash compared to the prior year.
When looking back at the historical data, the CCC was notably higher in fiscal year 2022 at 102.42 days, indicating potential inefficiencies in managing working capital during that period. However, the CCC improved in the following year, dropping to 81.93 days in fiscal year 2021, which suggests a more effective management of cash conversion.
Going further back to fiscal year 2020, the CCC was 93.97 days, showing a moderate level of efficiency in converting investments into cash during that period.
Overall, the cash conversion cycle for John B Sanfilippo & Son Inc has shown some variability over the past five years, with fluctuations in efficiency in converting investments into cash. It would be essential for the company to continue monitoring and optimizing its working capital management to improve its cash conversion cycle in the future.
Peer comparison
Jun 30, 2024