Kroger Company (KR)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Nov 4, 2023 | Oct 31, 2023 | Aug 12, 2023 | Jul 31, 2023 | May 20, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 28, 2023 | Nov 5, 2022 | Oct 31, 2022 | Aug 13, 2022 | Jul 31, 2022 | May 21, 2022 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 22.40 | 23.41 | 19.93 | 20.05 | 23.10 | 23.84 | 27.34 | 25.28 | 20.25 | 20.12 | 26.30 | 28.71 | 33.99 | 33.94 | — | 26.97 | — | 21.43 | 21.75 | 23.65 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 5.50 | — | 5.22 | — | 4.21 | — | 4.04 | — | — | 5.93 | 5.36 | — | 4.31 | — | 4.44 | — |
| Number of days of payables | days | — | — | — | — | 33.75 | — | 28.09 | — | 22.53 | — | 27.51 | — | — | 31.96 | — | — | — | — | — | — |
| Cash conversion cycle | days | 22.40 | 23.41 | 19.93 | 20.05 | -5.16 | 23.84 | 4.47 | 25.28 | 1.93 | 20.12 | 2.83 | 28.71 | 33.99 | 7.91 | 5.36 | 26.97 | 4.31 | 21.43 | 26.20 | 23.65 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 22.40 + — – —
= 22.40
The cash conversion cycle, which measures how long it takes a company to convert its investments in inventory and other resources into cash flows from sales, fluctuated over the period analyzed for Kroger Company.
From April 30, 2022, to May 21, 2022, the cycle increased from 23.65 days to 26.20 days, indicating a longer time taken to convert resources into cash. However, by July 31, 2022, the cycle decreased sharply to 21.43 days, suggesting a more efficient conversion process.
The cycle reached its shortest duration on August 12, 2023, at 1.93 days, showcasing an exceptionally swift conversion of resources into cash. This efficiency was not sustained, with fluctuations occurring in subsequent periods.
The data reveals some anomalies, such as negative values on certain dates like February 3, 2024 (-5.16 days). It is essential to scrutinize such outliers to ascertain the underlying causes and determine their impact on the company's overall cash conversion efficiency.
Overall, analyzing the cash conversion cycle for Kroger Company over the specified period provides insights into its operational efficiency in managing inventory, receivables, and payables, which are crucial factors affecting its cash flow and liquidity position.
Peer comparison
Jan 31, 2025