Patterson Companies Inc (PDCO)
Cash conversion cycle
| Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Apr 24, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.08 | 63.76 | 60.69 | 64.75 | 56.92 | 67.77 | 63.30 | 62.80 | 55.03 | 61.25 | 58.90 | 55.64 | 57.11 | 68.83 | 63.76 | 60.22 | 69.06 | 71.47 | 65.66 | 67.63 |
| Days of sales outstanding (DSO) | days | 30.41 | 26.93 | 27.32 | 22.88 | 26.93 | 24.15 | 25.99 | 21.10 | 25.11 | 26.55 | 27.58 | 21.71 | 27.73 | 29.54 | 32.39 | 25.13 | 27.69 | 29.20 | 38.02 | 32.96 |
| Number of days of payables | days | 52.44 | 48.26 | 48.71 | 50.90 | 51.90 | 50.69 | 51.56 | 47.07 | 47.73 | 50.45 | 54.87 | 42.83 | 47.23 | 55.61 | 57.81 | 47.26 | 73.30 | 66.21 | 63.91 | 52.24 |
| Cash conversion cycle | days | 33.05 | 42.43 | 39.30 | 36.73 | 31.94 | 41.23 | 37.73 | 36.83 | 32.42 | 37.35 | 31.62 | 34.51 | 37.62 | 42.76 | 38.34 | 38.10 | 23.45 | 34.46 | 39.76 | 48.34 |
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 fluctuated over the time period analyzed. The cycle represents the time it takes for the company to convert its investment in inventory into cash received from customers.
Analyzing the data, we can see that the cash conversion cycle ranged from a low of 23.45 days to a high of 48.34 days. A shorter cycle indicates that the company is able to efficiently manage its working capital and turn inventory into sales and then into cash quickly. Conversely, a longer cycle may suggest inefficiencies in managing inventory, collecting receivables, or paying suppliers.
Overall, it appears that Patterson Companies Inc has experienced some variability in its cash conversion cycle over the periods analyzed. Further investigation into the underlying factors influencing these fluctuations, such as changes in inventory management, sales practices, or payment terms, would provide a more detailed understanding of the company's operational efficiency.
Peer comparison
Apr 27, 2024