Qorvo Inc (QRVO)

Cash conversion cycle

		Mar 31, 2025	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
Days of inventory on hand (DOH)	days	108.51	106.95	105.57	109.88	113.69	120.72	154.35	168.14	130.42	133.14	125.74	125.96	116.91	112.32	94.86	93.14	86.94	85.79	87.75	100.72
Days of sales outstanding (DSO)	days	37.95	42.25	54.89	40.10	41.38	54.27	72.36	35.28	31.14	32.71	52.64	42.75	47.22	51.65	53.37	41.70	41.58	49.62	51.96	36.60
Number of days of payables	days	44.12	46.18	48.93	46.03	40.48	47.01	50.59	53.92	34.50	34.96	48.19	48.74	50.73	56.60	82.80	57.53	53.74	53.97	44.56	43.45
Cash conversion cycle	days	102.34	103.02	111.53	103.94	114.59	127.99	176.12	149.51	127.06	130.88	130.18	119.97	113.40	107.38	65.43	77.31	74.78	81.43	95.16	93.87

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 108.51 + 37.95 – 44.12
= 102.34

The cash conversion cycle of Qorvo Inc has shown fluctuating trends over the period from June 30, 2020, to March 31, 2025. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

The cash conversion cycle for Qorvo Inc ranged from a low of 65.43 days on September 30, 2021, to a high of 176.12 days on September 30, 2023. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital, while a longer cycle may suggest inefficiencies in managing inventory, receivables, and payables.

The company experienced an increase in the cash conversion cycle from 74.78 days on March 31, 2021, to 176.12 days on September 30, 2023, which could be a concerning trend. However, there was a notable drop in the cycle to 102.34 days on March 31, 2025, indicating a possible improvement in managing working capital during that period.

It is important for Qorvo Inc to closely monitor and manage its cash conversion cycle to ensure efficient use of resources, optimize cash flows, and maintain healthy liquidity levels. Trend analysis of the cycle can provide insights into the company's operational efficiency and working capital management practices.