Qorvo Inc (QRVO)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Days of inventory on hand (DOH)	days	113.70	118.42	151.07	164.59	127.95	133.14	125.74	125.96	116.91	112.32	94.86	93.14	86.94	85.79	87.75	100.72	98.46	93.18	94.58	98.40
Days of sales outstanding (DSO)	days	41.38	54.27	72.36	37.50	33.85	35.45	—	—	47.22	—	—	—	41.58	—	—	—	—	—	—	—
Number of days of payables	days	40.48	46.11	49.51	52.78	33.84	34.96	48.19	48.74	50.73	56.60	82.80	57.53	53.74	53.97	44.56	43.45	47.01	46.44	41.70	42.71
Cash conversion cycle	days	114.60	126.58	173.92	149.31	127.96	133.62	77.55	77.22	113.40	55.72	12.06	35.61	74.78	31.81	43.19	57.27	51.44	46.74	52.89	55.69

March 31, 2024 calculation

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

The cash conversion cycle of Qorvo Inc has shown fluctuations over the past quarters, indicating changes in the company's efficiency in managing its working capital. A lower cash conversion cycle indicates that the company is efficiently managing its cash flow, while a higher cycle suggests that the company takes longer to convert its investment in inventory into cash from sales.

In the most recent quarter, ending March 31, 2024, the cash conversion cycle was 114.60 days, which was an improvement compared to the previous quarter's 126.58 days. This suggests that Qorvo Inc was able to shorten the time it takes to convert its investments in inventory and accounts receivable into cash.

Looking further back, we can see that the cash conversion cycle has been volatile, with fluctuations in the range of 55 to 173 days over the past few quarters. This indicates that Qorvo Inc may be experiencing challenges in managing its working capital efficiently and consistently.

Overall, an in-depth analysis of the components of the cash conversion cycle, including the days inventory outstanding, days sales outstanding, and days payables outstanding, would provide more insight into the specific areas where Qorvo Inc can focus on improving its cash conversion cycle and working capital management.