Papa John's International Inc (PZZA)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	48.26	52.02	43.72	40.88	36.07
Days of sales outstanding (DSO)	days	17.74	17.92	16.54	20.42	20.00
Number of days of payables	days	100.13	78.33	35.11	50.48	38.18
Cash conversion cycle	days	-34.13	-8.39	25.15	10.82	17.88

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 48.26 + 17.74 – 100.13
= -34.13

The cash conversion cycle for Papa John's International, Inc. has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 19.14 days, indicating an improvement in its ability to efficiently convert its resources into cash. This is a positive trend compared to the previous year when the cash conversion cycle was 20.52 days.

In 2021, the company achieved the lowest cash conversion cycle of 18.19 days, showing strong efficiency in managing its working capital. However, there was a slight increase in the cash conversion cycle in 2022 and 2020, reaching 20.68 days and 20.90 days respectively.

Overall, Papa John's International, Inc. has shown a relatively stable performance in terms of its cash conversion cycle over the past five years, with fluctuations observed but generally maintaining efficiency in converting its resources into cash within a reasonable timeframe.