Science Applications International Corporation Common Stock (SAIC)

Cash conversion cycle

		Jan 31, 2025	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021
Days of inventory on hand (DOH)	days	—	0.17	3.80	3.57	4.55
Days of sales outstanding (DSO)	days	48.80	44.82	45.04	50.68	50.41
Number of days of payables	days	34.97	31.49	33.42	34.18	30.13
Cash conversion cycle	days	13.84	13.49	15.43	20.07	24.83

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 48.80 – 34.97
= 13.84

The cash conversion cycle of Science Applications International Corporation Common Stock has shown a consistent trend of improvement over the past five years. Starting at 24.83 days in January 29, 2021, the company has steadily reduced its cash conversion cycle to 13.84 days by January 31, 2025. This indicates that the company has been able to more efficiently convert its investments in inventory and accounts receivable into cash.

A decreasing cash conversion cycle signifies that Science Applications International Corporation is managing its working capital more effectively, resulting in faster collections from customers and better inventory turnover. This improved efficiency suggests that the company is operating more smoothly, with a healthier balance between paying suppliers, selling goods, and receiving payments.

Overall, the downward trend in the cash conversion cycle is a positive sign for the financial health and operational efficiency of Science Applications International Corporation Common Stock. It indicates that the company is making strides in optimizing its cash flow management and working capital practices to enhance profitability and sustainability in the long term.