Sanmina Corporation (SANM)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 73.24 | 63.79 | 84.57 | 61.03 | 48.86 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | 73.16 | 67.33 | 102.52 | 85.81 | 68.64 |
| Cash conversion cycle | days | 0.08 | -3.54 | -17.94 | -24.78 | -19.78 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 73.24 + — – 73.16
= 0.08
The cash conversion cycle of Sanmina Corporation has shown positive improvement over the past five years, moving from negative figures to a positive 0.08 days as of September 30, 2024. This indicates that the company is now able to convert its invested cash into sales and then back into cash more efficiently and quickly compared to previous years.
In September 2023, the cash conversion cycle was at -3.54 days, which suggests that the company was able to operate with negative working capital, likely due to favorable sales terms or efficient management of inventories and receivables. However, this improved further in the following years.
The significant negative cash conversion cycles in September 2022 (-17.94 days), September 2021 (-24.78 days), and September 2020 (-19.78 days) suggest that the company was able to operate effectively with negative working capital, indicating strong management of the cash flow cycle.
Overall, the trend of the cash conversion cycle for Sanmina Corporation reflects improving efficiency in managing cash flow and working capital over the past five years, leading to a positive cash conversion cycle in the most recent period.
Peer comparison
Sep 30, 2024