NVIDIA Corporation (NVDA)
Cash conversion cycle
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 112.72 | 115.99 | 115.99 | 162.08 | 162.08 |
| Days of sales outstanding (DSO) | days | — | — | 59.91 | — | 51.79 |
| Number of days of payables | days | — | — | 59.27 | — | 37.48 |
| Cash conversion cycle | days | 112.72 | 115.99 | 116.63 | 162.08 | 176.38 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 112.72 + — – —
= 112.72
The cash conversion cycle of NVIDIA Corporation has shown a decreasing trend over the past five years. From January 29, 2023, to January 31, 2025, the cash conversion cycle has reduced from 176.38 days to 112.72 days. This indicates that the company has been able to efficiently manage its working capital and convert its investments into cash more rapidly.
A lower cash conversion cycle suggests that NVIDIA is streamlining its operations effectively, which could be attributed to better inventory management, faster accounts receivable collection, and optimized accounts payable practices. This could potentially lead to improved liquidity and cash flow for the company.
Overall, the decreasing trend in the cash conversion cycle for NVIDIA Corporation reflects positively on its operational efficiency and financial management, indicating that the company is effectively managing its resources to generate cash inflows in a timely manner.
Peer comparison
Jan 31, 2025