Kenvue Inc. (KVUE)

Cash conversion cycle

		Dec 31, 2023
Days of inventory on hand (DOH)	days	78.40
Days of sales outstanding (DSO)	days	49.48
Number of days of payables	days	105.43
Cash conversion cycle	days	22.46

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 78.40 + 49.48 – 105.43
= 22.46

Based on the given information, Kenvue Inc.'s cash conversion cycle was 22.46 days as of December 31, 2023. The cash conversion cycle is a measure of how long it takes for a company to convert its resources into cash flow.

A shorter cash conversion cycle indicates that the company is more efficient in managing its working capital and generating cash from its operations. On the other hand, a longer cash conversion cycle may suggest that the company is struggling to turn its investments in inventory and accounts receivable into cash.

In this case, the cash conversion cycle of 22.46 days is a positive indicator, showing that Kenvue Inc. is able to efficiently manage its working capital and convert its resources into cash in a relatively short period of time. This efficiency can contribute to the overall financial health and liquidity of the company.