Patterson Companies Inc (PDCO)
Cash conversion cycle
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.08 | 55.08 | 56.92 | 56.92 | 55.03 |
| Days of sales outstanding (DSO) | days | — | 30.41 | — | 26.93 | — |
| Number of days of payables | days | — | 52.44 | — | 51.90 | — |
| Cash conversion cycle | days | 55.08 | 33.05 | 56.92 | 31.94 | 55.03 |
April 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.08 + — – —
= 55.08
The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Analyzing the data for Patterson Companies Inc, we observe fluctuations in the cash conversion cycle over the years.
As of April 30, 2022, the cash conversion cycle stood at 55.03 days, indicating that Patterson Companies took approximately 55 days to convert its investments into cash. By April 29, 2023, the cycle decreased significantly to 31.94 days, suggesting an improvement in efficiency in managing inventory, accounts receivable, and accounts payable.
However, by April 30, 2023, the cycle increased to 56.92 days, indicating a potential delay in the conversion of investments to cash. This trend reversed by April 27, 2024, with a decrease to 33.05 days, showing better efficiency in managing working capital.
As of April 30, 2024, the cash conversion cycle slightly increased to 55.08 days. Overall, Patterson Companies Inc has shown fluctuations in its cash conversion cycle over the years, indicating varying efficiency in managing its working capital components.
Peer comparison
Apr 30, 2024