Papa John's International Inc (PZZA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 8.70 | 8.92 | 8.82 | 7.79 | 7.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 8.70 | 8.92 | 8.82 | 7.79 | 7.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 8.70 + — – —
= 8.70
The cash conversion cycle of Papa John's International Inc has shown a slight increase over the years. As of December 31, 2020, the company's cash conversion cycle was 7.52 days, which increased to 7.79 days by December 31, 2021. Subsequently, there was a further rise to 8.82 days by December 31, 2022, and a slight uptick to 8.92 days by December 31, 2023. By December 31, 2024, the cash conversion cycle decreased to 8.70 days, but it still remains higher compared to the starting point in 2020. The trend indicates that Papa John's International Inc may be taking longer to convert its investments in inventory and accounts receivable into cash, which could impact its liquidity and working capital management. It is important for the company to monitor and potentially optimize its cash conversion cycle to ensure efficient operations and financial health.
Peer comparison
Dec 31, 2024