Vail Resorts Inc (MTN)
Cash conversion cycle
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 102.24 | 117.31 | 102.76 | 81.66 | 95.41 |
| Days of sales outstanding (DSO) | days | 47.54 | 48.14 | 55.41 | 66.02 | 19.83 |
| Number of days of payables | days | 121.36 | 131.45 | 142.97 | 99.90 | 55.92 |
| Cash conversion cycle | days | 28.41 | 34.00 | 15.20 | 47.77 | 59.32 |
July 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 102.24 + 47.54 – 121.36
= 28.41
The cash conversion cycle of Vail Resorts Inc has shown fluctuations over the past five years. In 2024, the company's cash conversion cycle improved to 28.41 days, indicating that it took Vail Resorts approximately 28 days to convert its investments in operations back into cash. This is a positive trend compared to 2023 when the cycle was 34.00 days, suggesting more efficient management of working capital in the most recent year.
In 2022, the cash conversion cycle decreased significantly to 15.20 days, reflecting improved efficiency in managing cash, accounts receivable, and inventory. However, in 2021 and 2020, the cycle increased again to 47.77 days and 59.32 days, respectively, indicating a potential slowdown in the conversion of resources into cash during those years.
Overall, Vail Resorts Inc's cash conversion cycle has displayed variability, with the company showing periods of both improvement and decline in efficiency. Monitoring this cycle can provide insights into the company's working capital management and operational effectiveness over time.
Peer comparison
Jul 31, 2024