J & J Snack Foods Corp (JJSF)

Cash conversion cycle

		Sep 30, 2024	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 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	49.01	50.37	53.39	49.18	48.80	51.44	53.35	55.79	56.61	57.87	55.48	47.45	46.41	44.79	47.26	46.29	44.57	48.01	48.55	48.06
Days of sales outstanding (DSO)	days	43.88	47.86	41.27	39.00	46.39	52.39	49.28	48.37	55.04	70.99	54.99	48.56	51.96	52.62	52.12	42.16	45.21	39.33	41.22	40.10
Number of days of payables	days	25.27	30.46	27.12	24.29	25.82	28.97	25.24	27.98	33.92	42.76	35.33	32.53	36.47	37.89	34.12	30.76	29.92	27.41	25.58	27.48
Cash conversion cycle	days	67.62	67.78	67.54	63.89	69.37	74.87	77.38	76.18	77.72	86.09	75.15	63.48	61.90	59.53	65.25	57.70	59.85	59.93	64.19	60.69

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 49.01 + 43.88 – 25.27
= 67.62

The cash conversion cycle of J & J Snack Foods Corp has shown some fluctuations over the periods provided. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash received from sales.

From December 2021 to March 2022, the cash conversion cycle decreased from 77.72 days to 63.48 days, indicating an improvement in the company's ability to manage its working capital efficiently. However, this trend reversed in the following quarters, with the cycle increasing to 75.15 days in June 2022 and then peaking at 86.09 days in September 2022.

Subsequently, there was a favorable trend as the cash conversion cycle gradually decreased to 67.62 days by September 2024. This improvement suggests that J & J Snack Foods Corp has been able to streamline its operations and manage its inventory and receivables more effectively, thereby reducing the time it takes to convert investments into cash inflows.

Overall, while there have been fluctuations in the cash conversion cycle over the periods provided, the recent decline indicates a positive trend in the company's working capital management and efficiency in converting resources into cash.