Science Applications International Corporation Common Stock (SAIC)

Cash conversion cycle

		Feb 2, 2024	Nov 3, 2023	Aug 4, 2023	May 5, 2023	Feb 3, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019	Aug 2, 2019	May 3, 2019
Days of inventory on hand (DOH)	days	0.17	3.61	3.97	4.11	3.80	7.40	7.41	7.20	3.57	7.22	8.34	8.97	4.55	9.96	11.26	11.12	5.40	9.79	9.56	10.17
Days of sales outstanding (DSO)	days	44.08	48.79	46.19	—	45.04	52.00	50.94	54.25	50.68	55.82	54.25	52.69	50.41	55.82	56.30	—	62.88	—	—	—
Number of days of payables	days	31.49	—	—	—	33.42	—	—	—	34.18	—	—	—	30.13	—	—	—	33.91	—	—	—
Cash conversion cycle	days	12.75	52.40	50.17	4.11	15.43	59.40	58.35	61.45	20.07	63.04	62.59	61.65	24.83	65.78	67.55	11.12	34.38	9.79	9.56	10.17

February 2, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 0.17 + 44.08 – 31.49
= 12.75

The cash conversion cycle of Science Applications International Corporation Common Stock has exhibited fluctuations over the past few reporting periods. The company's cash conversion cycle is a metric that represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

In the most recent period, as of February 2, 2024, the cash conversion cycle was 12.75 days, indicating that the company was able to efficiently manage its working capital and convert its investments into cash relatively quickly compared to previous periods.

However, the cash conversion cycle experienced significant increases in the preceding periods, particularly in the November 3, 2023, and August 4, 2023, reporting periods, where it reached 52.40 days and 50.17 days, respectively. These prolonged cycles suggest that the company may have faced challenges in managing its inventory, receivables, and payables efficiently, leading to longer cash conversion times.

On the other hand, in the May 5, 2023 period, the cash conversion cycle significantly decreased to 4.11 days, indicating improved efficiency in working capital management, possibly due to effective inventory turnover and timely collection of receivables.

Overall, the varying cash conversion cycles of Science Applications International Corporation Common Stock imply fluctuations in the company's operational efficiency and liquidity management over the analyzed periods. It is essential for the company to continue monitoring and improving its cash conversion cycle to ensure optimal use of its resources and maintain healthy cash flow levels.