Kroger Company (KR)
Cash conversion cycle
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 22.59 | 21.99 | 21.65 | 23.69 | 23.41 |
| Days of sales outstanding (DSO) | days | — | 5.21 | — | — | 5.52 |
| Number of days of payables | days | — | 32.12 | — | — | 22.04 |
| Cash conversion cycle | days | 22.59 | -4.93 | 21.65 | 23.69 | 6.89 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 22.59 + — – —
= 22.59
The cash conversion cycle for Kroger Company fluctuated over the years based on the provided data. On January 28, 2023, the cycle was 6.89 days, indicating a relatively efficient conversion of inventory to cash. However, this cycle increased significantly to 23.69 days by January 31, 2023, suggesting potential delays in converting inventory to sales and ultimately cash.
By January 31, 2024, the cash conversion cycle slightly improved to 21.65 days, indicating some progress in managing inventory and accounts receivable. Interestingly, on February 3, 2024, the cycle was recorded as -4.93 days, suggesting a negative cycle that could be due to effective cash management strategies or data anomalies.
As of January 31, 2025, the cash conversion cycle stood at 22.59 days, reflecting a moderate timeframe for Kroger to convert inventory and accounts receivable into cash. Overall, the fluctuating nature of the cash conversion cycle indicates variability in Kroger's efficiency in managing its working capital and cash flow processes during the analyzed period.
Peer comparison
Jan 31, 2025