Johnson Controls International PLC (JCI)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.77 | 26.60 | 39.54 | 34.69 | 28.99 |
| Days of sales outstanding (DSO) | days | 97.92 | 83.07 | 83.83 | 88.81 | 91.56 |
| Number of days of payables | days | 56.87 | 49.70 | 64.80 | 63.18 | 51.02 |
| Cash conversion cycle | days | 70.82 | 59.96 | 58.57 | 60.32 | 69.53 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.77 + 97.92 – 56.87
= 70.82
The cash conversion cycle of Johnson Controls International PLC has shown fluctuations over the past five years. In the most recent fiscal year ending on September 30, 2024, the company's cash conversion cycle was 70.82 days, indicating that it took approximately 70.82 days for the company to convert its investments in inventory and other resources into cash from sales. This represents an increase from the previous year's cycle of 59.96 days.
Comparing the data over the five-year period, it is observed that the cash conversion cycle for Johnson Controls International PLC has been somewhat volatile, with fluctuations in performance. The cycle ranged from a low of 58.57 days in September 2022 to a high of 69.53 days in September 2020.
A longer cash conversion cycle can indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers. It is important for the company to monitor and potentially improve its cash conversion cycle to ensure optimal cash flow management and operational efficiency. Further analysis of the underlying factors driving these changes in the cash conversion cycle would provide more insights into the company's financial health and performance.
Peer comparison
Sep 30, 2024