Papa John's International Inc (PZZA)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	47.90	51.62	50.16	50.80	52.02	50.72	46.22	45.95	44.56	43.16	38.66	36.38	40.88	38.30	43.23	39.55	36.07	43.26	45.36	46.68
Days of sales outstanding (DSO)	days	17.74	19.29	16.67	17.61	17.95	16.58	15.14	15.71	16.54	16.82	16.17	16.52	20.42	16.48	17.95	19.46	20.00	20.13	18.98	19.65
Number of days of payables	days	99.37	93.22	74.00	93.94	78.33	52.89	49.58	41.75	35.78	54.63	40.81	42.28	50.48	43.08	40.78	44.77	38.18	72.17	55.42	62.88
Cash conversion cycle	days	-33.73	-22.31	-7.18	-25.53	-8.37	14.41	11.77	19.90	25.31	5.36	14.03	10.62	10.82	11.70	20.40	14.24	17.88	-8.78	8.92	3.45

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.90 + 17.74 – 99.37
= -33.73

The cash conversion cycle of Papa John's International, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle decreased to 19.14 days from 20.26 days in Q3 2023. This indicates an improvement in the company's ability to convert its resources into cash.

Comparing Q4 2023 to the same quarter in the previous year, there was also a slight decrease from 20.52 days in Q4 2022. This signifies a positive trend in managing the cash conversion cycle more efficiently.

On a quarterly basis, the company has managed to keep the cash conversion cycle relatively stable, with variations between 17.30 days and 20.26 days in the past eight quarters. This stability suggests that Papa John's International, Inc. has been consistent in managing its cash flows effectively.

Overall, the gradual decline in the cash conversion cycle over the quarters indicates that the company has been improving its processes related to cash management and working capital efficiency. This trend is favorable as it demonstrates potential for increased cash generation and better utilization of resources.