Science Applications International Corporation Common Stock (SAIC)

Cash conversion cycle

		Jan 31, 2025	Nov 1, 2024	Aug 2, 2024	May 3, 2024	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
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
Days of sales outstanding (DSO)	days	48.80	50.56	47.32	46.94	44.82	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	—
Number of days of payables	days	34.97	—	—	—	31.49	—	—	—	33.42	—	—	—	34.18	—	—	—	30.13	—	—	—
Cash conversion cycle	days	13.84	50.56	47.32	46.94	13.49	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

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 exhibited fluctuations over the analyzed periods. The company's ability to convert its resources into cash has varied significantly, ranging from a low of 4.11 days to a high of 67.55 days.

Initially, the cash conversion cycle was relatively stable, hovering around 60 days from July 2020 to April 2021. From January 2022 to August 2023, there was a positive trend as the cash conversion cycle decreased significantly, reaching its lowest point of 4.11 days in May 2023.

However, from November 2023 to November 2024, the cash conversion cycle increased again, peaking at 52.40 days in November 2023. Subsequently, there was a slight decrease in the cycle duration, but it remained relatively high compared to earlier periods.

Overall, fluctuations in the cash conversion cycle of Science Applications International Corporation Common Stock suggest varying efficiencies in managing cash flows, working capital, and operating cycles. It is essential for the company to closely monitor and analyze these trends to optimize its cash management strategies and maintain a healthy financial position.