John B Sanfilippo & Son Inc (JBSS)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 102.82 | 84.14 | 80.10 | 98.87 | 80.21 |
| Days of sales outstanding (DSO) | days | 25.27 | 29.07 | 26.56 | 26.58 | 28.23 |
| Number of days of payables | days | 24.43 | 22.87 | 19.77 | 23.03 | 26.48 |
| Cash conversion cycle | days | 103.67 | 90.34 | 86.89 | 102.42 | 81.96 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 102.82 + 25.27 – 24.43
= 103.67
The cash conversion cycle (CCC) of John B Sanfilippo & Son Inc has exhibited notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the CCC was 81.96 days as of June 30, 2021, reflecting the duration it takes for the company to convert its investments in inventory and receivables into cash, offset by its payables.
By June 30, 2022, the CCC increased markedly to 102.42 days, indicating that the company experienced a longer period to convert its working capital into cash. This rise suggests potential extensions in inventory holding periods, receivables collection times, or both, which may have impacted liquidity management and working capital efficiency.
Subsequently, the CCC decreased to 86.89 days by June 30, 2023, signaling an improvement in the company's working capital cycle. This reduction could be attributed to enhanced collection processes, more efficient inventory turnover, or a combination thereof, leading to more rapid cash realization.
However, there was an upward movement again, with the CCC reaching 90.34 days on June 30, 2024. This slight increase indicates a modest elongation in the cash conversion process, potentially due to less favorable receivables or inventory management during this period.
The most recent data point, as of June 30, 2025, shows a CCC of 103.67 days. This indicates a significant lengthening of the cycle, possibly reflecting extended receivables collection, slower inventory turnover, or delays in payments to suppliers.
Overall, the company’s cash conversion cycle has experienced periods of both elongation and contraction, with a general trend toward longer cycles in recent years. These fluctuations may impact liquidity and working capital management, emphasizing the need for ongoing analysis of receivables, inventory, and payables to optimize the cycle and enhance cash flow efficiency.
Peer comparison
Jun 30, 2025