Patterson Companies Inc (PDCO)
Cash conversion cycle
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.08 | 56.92 | 55.03 | 57.11 | 69.06 |
| Days of sales outstanding (DSO) | days | 30.41 | 26.93 | 25.11 | 27.73 | 27.69 |
| Number of days of payables | days | 52.44 | 51.90 | 47.73 | 47.23 | 73.30 |
| Cash conversion cycle | days | 33.05 | 31.94 | 32.42 | 37.62 | 23.45 |
April 27, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.08 + 30.41 – 52.44
= 33.05
The cash conversion cycle of Patterson Companies Inc has shown some fluctuations over the past five years. In the most recent fiscal year ending on April 27, 2024, the company's cash conversion cycle was 33.05 days, slightly higher than the previous year's figure of 31.94 days. This indicates that it took Patterson Companies Inc slightly longer to convert its investments in inventory and receivables into cash during the latest fiscal period.
Comparing the data across the five-year period, the company's cash conversion cycle has ranged from a low of 23.45 days in April 2020 to a high of 37.62 days in April 2021. This suggests some volatility in the efficiency of Patterson Companies Inc in managing its working capital over the years.
Overall, the trend in Patterson Companies Inc's cash conversion cycle indicates a moderate level of efficiency in managing its cash flow and working capital. The company may potentially benefit from strategies to further streamline its inventory and accounts receivable processes in order to shorten its cash conversion cycle and improve overall liquidity management.
Peer comparison
Apr 27, 2024