Papa John's International Inc (PZZA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 8.16 | 7.97 | 7.90 | 8.03 | 7.62 | 8.16 | 8.08 | 7.93 | 8.76 | 9.00 | 8.18 | 8.49 | 7.79 | 7.65 | 6.93 | 6.54 | 7.52 | 7.35 | 8.63 | 8.43 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 8.16 | 7.97 | 7.90 | 8.03 | 7.62 | 8.16 | 8.08 | 7.93 | 8.76 | 9.00 | 8.18 | 8.49 | 7.79 | 7.65 | 6.93 | 6.54 | 7.52 | 7.35 | 8.63 | 8.43 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 8.16 + — – —
= 8.16
Based on the data provided, the cash conversion cycle of Papa John's International Inc has shown some fluctuations over the period observed. The cash conversion cycle is a metric that measures the time it takes for a company to convert its investment in inventory and other inputs into cash flows from sales.
From March 31, 2020, to June 30, 2020, the cash conversion cycle increased slightly from 8.43 days to 8.63 days before decreasing to 7.35 days by September 30, 2020. The cycle then increased to 7.52 days by December 31, 2020.
There was a noticeable improvement in the cash conversion cycle from March 31, 2021, to June 30, 2021, as it decreased to 6.93 days. However, the cycle increased again to 9.00 days by September 30, 2022, before gradually decreasing to 7.97 days by September 30, 2024.
Overall, the cash conversion cycle of Papa John's International Inc has demonstrated some variability, with periods of both improvement and deterioration. It is essential for the company to effectively manage its inventory, receivables, and payables to optimize its cash conversion cycle and ensure efficient working capital management.
Peer comparison
Dec 31, 2024