Qorvo Inc (QRVO)

Cash conversion cycle

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Days of inventory on hand (DOH)	days	113.70	127.95	116.91	86.94	98.46
Days of sales outstanding (DSO)	days	41.38	33.85	47.22	41.58	41.98
Number of days of payables	days	40.48	33.84	50.73	53.74	47.01
Cash conversion cycle	days	114.60	127.96	113.40	74.78	93.43

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 113.70 + 41.38 – 40.48
= 114.60

Qorvo Inc's cash conversion cycle has fluctuated over the past five years. In the most recent fiscal year ending March 31, 2024, the cash conversion cycle was 114.60 days, indicating the time it takes for the company to convert its invested cash in operations back into cash. This represents a decrease from the previous year's cycle of 127.96 days, suggesting an improvement in the company's efficiency in managing its working capital.

Comparing the current cycle to that of two years ago, there has been a slight increase from 113.40 days to 114.60 days. However, there is a significant improvement from the cycle observed three years ago, where it stood at 74.78 days. This indicates that Qorvo Inc has been taking longer to convert its invested cash into revenue and back into cash in recent years.

It is worth noting that the cash conversion cycle for the fiscal year ending March 31, 2024, is still higher than that of two years ago, signaling a potential area for improvement in the company's working capital management.

Overall, Qorvo Inc's cash conversion cycle has shown variability over the past five years, with recent years demonstrating an increased time taken to convert invested cash into revenue and back into cash. This trend underscores the importance of closely monitoring and optimizing working capital efficiency for sustained financial health and operational effectiveness.