WK Kellogg Co (KLG)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 49.57 | 47.39 | 50.71 |
| Days of sales outstanding (DSO) | days | 26.86 | 26.95 | 29.36 |
| Number of days of payables | days | 72.05 | 71.01 | 75.79 |
| Cash conversion cycle | days | 4.39 | 3.33 | 4.28 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 49.57 + 26.86 – 72.05
= 4.39
The cash conversion cycle of WK Kellogg Co, a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown variations over the analyzed periods.
In June 30, 2024, the cash conversion cycle stood at 4.28 days, indicating that on average, it took the company approximately 4.28 days to convert its investments into cash. By September 30, 2024, the number decreased to 3.33 days, suggesting an improvement in the efficiency of the company's working capital management. However, by December 31, 2024, the cash conversion cycle increased slightly to 4.39 days, signaling a potential slowdown in the conversion of resources into cash during that period.
Overall, the cash conversion cycle of WK Kellogg Co fluctuated throughout the analyzed periods, with a general trend towards improvement in efficiency from June to September, followed by a slight deterioration by the end of the year. This variability may reflect changes in the company's operational effectiveness, inventory management, and payment collection processes.
Peer comparison
Dec 31, 2024