Sanmina Corporation (SANM)
Cash conversion cycle
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.91 | 64.28 | 63.98 | 68.03 | 100.71 | 107.51 | 111.92 | 109.90 | 72.14 | 60.53 | 50.25 | 44.17 | 47.15 | 48.86 | 49.91 | 47.31 | 42.14 | 43.01 | 43.68 | 49.23 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 65.32 | 70.18 | 74.06 | 80.13 | 124.69 | 130.32 | 139.12 | 138.91 | 97.51 | 85.11 | 72.95 | 62.36 | 65.78 | 68.64 | 70.72 | 60.33 | 58.94 | 63.85 | 64.45 | 70.40 |
| Cash conversion cycle | days | -1.40 | -5.90 | -10.09 | -12.10 | -23.98 | -22.81 | -27.20 | -29.01 | -25.37 | -24.57 | -22.71 | -18.20 | -18.64 | -19.78 | -20.81 | -13.02 | -16.80 | -20.84 | -20.76 | -21.17 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 63.91 + — – 65.32
= -1.40
The cash conversion cycle of Sanmina Corporation has shown some fluctuation over the past few quarters. The company's ability to convert its resources into cash has generally improved in recent periods, with a decreasing trend in the cycle length.
Looking at the latest data as of Dec 31, 2023, the cash conversion cycle stands at -1.40 days, indicating that the company is able to convert its inventory and receivables into cash more quickly than it takes to pay its suppliers. This negative value suggests a potentially efficient management of working capital, where the company is able to generate cash before having to pay for its inputs.
The trend towards a shorter cash conversion cycle is positive, as it signifies improved liquidity and potentially better cash flow management. However, it is important to note that a negative cash conversion cycle may also imply aggressive inventory and receivables management, which could potentially impact relationships with suppliers or customers in the long run.
Overall, Sanmina Corporation's decreasing cash conversion cycle over the past quarters signals improved efficiency in managing its working capital and liquidity, which can be a positive indicator of the company's financial health.
Peer comparison
Dec 31, 2023