John B Sanfilippo & Son Inc (JBSS)
Cash conversion cycle
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 23, 2021 | Sep 23, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.14 | 94.63 | 92.50 | 83.59 | 80.10 | 85.76 | 78.91 | 89.47 | 98.87 | 107.84 | 93.56 | 82.27 | 80.21 | 81.82 | 82.91 | 78.45 | 89.17 | 91.26 | 81.53 | 70.35 |
| Days of sales outstanding (DSO) | days | 29.07 | 26.77 | 28.31 | 25.43 | 26.56 | 26.59 | 26.35 | 28.39 | 26.58 | 27.71 | 26.55 | 30.00 | 28.20 | 27.51 | 25.69 | 29.23 | 23.62 | 27.75 | 21.73 | 24.79 |
| Number of days of payables | days | 22.87 | 23.11 | 29.51 | 24.83 | 19.77 | 19.04 | 22.50 | 23.86 | 23.03 | 24.99 | 33.21 | 24.85 | 26.48 | 23.55 | 27.82 | 21.62 | 18.82 | 26.56 | 33.58 | 23.54 |
| Cash conversion cycle | days | 90.34 | 98.28 | 91.30 | 84.19 | 86.89 | 93.31 | 82.77 | 94.01 | 102.42 | 110.57 | 86.90 | 87.42 | 81.93 | 85.77 | 80.77 | 86.06 | 93.97 | 92.46 | 69.68 | 71.59 |
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 of John B Sanfilippo & Son Inc has shown fluctuations over the past few quarters, indicating varying efficiency in managing its cash flows and working capital. The cycle, which represents the time it takes for the company to convert its investments in inventory into cash received from sales, has ranged from a low of 69.68 days to a high of 110.57 days.
A higher cash conversion cycle typically indicates that the company takes longer to sell its inventory and collect cash from customers, potentially tying up cash in the operating cycle. On the other hand, a lower cycle suggests a more efficient management of working capital, with quicker inventory turnover and faster collection of receivables.
Based on the data provided, it appears that the company experienced a longer cash conversion cycle in some quarters, such as in March 2022 and June 2022, which may be a cause for concern as it indicates a potential slowdown in converting assets into cash. Conversely, there were quarters, like September 2019 and December 2020, where the cycle was relatively shorter, reflecting better efficiency in working capital management.
Overall, John B Sanfilippo & Son Inc should strive to monitor and improve its cash conversion cycle to ensure optimal cash flow management and operational efficiency.
Peer comparison
Jun 30, 2024