Patterson Companies Inc (PDCO)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.68 | 56.96 | 59.66 | 54.60 | 55.00 | 63.88 | 63.98 | 60.90 | 60.69 | 64.33 | 64.33 | 56.04 | 56.40 | 67.05 | 67.67 | 63.82 | 63.91 | 64.21 | 63.59 | 55.86 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 30.23 | — | 27.22 | — | 27.42 | — | 22.55 | — | 26.61 | — | 24.20 | — | 26.29 | — | 21.27 | — |
| Number of days of payables | days | — | — | — | — | 52.37 | — | 48.43 | — | 48.71 | — | 50.57 | — | 51.43 | — | 50.62 | — | 52.06 | — | 47.66 | — |
| Cash conversion cycle | days | 62.68 | 56.96 | 59.66 | 54.60 | 32.87 | 63.88 | 42.77 | 60.90 | 39.40 | 64.33 | 36.31 | 56.04 | 31.58 | 67.05 | 41.25 | 63.82 | 38.15 | 64.21 | 37.20 | 55.86 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.68 + — – —
= 62.68
The cash conversion cycle (CCC) measures the time it takes a company to convert its investments in inventory and accounts receivable into cash inflows. A shorter CCC indicates efficient working capital management.
Analyzing the data provided for Patterson Companies Inc, we observe fluctuations in the CCC over time. For instance, the CCC was at a relatively high level of 67.05 days in January 31, 2023, indicating that the company took longer to convert its investments into cash during that period. On the contrary, the CCC decreased to 31.58 days in April 29, 2023, suggesting an improvement in the company's working capital efficiency.
Additionally, the company experienced a notable increase in CCC to 64.33 days on July 31, 2023, followed by a decrease to 39.40 days on October 28, 2023. Such fluctuations in the CCC may reflect changes in inventory turnover, accounts receivable collection, and accounts payable management within Patterson Companies Inc.
Overall, by closely monitoring the trends in the cash conversion cycle, investors and stakeholders can assess the company's liquidity management and operational efficiency, which are crucial factors in evaluating its financial health and sustainability.
Peer comparison
Jan 31, 2025