Leslies Inc (LESL)

Cash conversion cycle

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021
Days of inventory on hand (DOH)	days	65.47	82.29	97.49	62.53
Days of sales outstanding (DSO)	days	13.77	9.30	11.88	12.21
Number of days of payables	days	18.90	15.45	42.17	31.76
Cash conversion cycle	days	60.35	76.13	67.20	42.99

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 65.47 + 13.77 – 18.90
= 60.35

The cash conversion cycle of Leslies Inc has fluctuated over the past four years. In 2024, it improved to 60.35 days from 76.13 days in 2023. However, it was higher compared to the cycle of 42.99 days in 2021. The company took less time in 2024 to convert its resources into cash, indicating a more efficient management of its working capital. Monitoring this cycle is crucial to assess the effectiveness of the company's operations in managing cash flow, inventory, and receivables.

Peer comparison

Sep 30, 2024

Company name

Symbol

Cash conversion cycle

Leslies Inc

LESL

60.35

Sally Beauty Holdings Inc