ScanSource Inc (SCSC)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 67.09 | 64.80 | 82.83 | 72.31 | 61.28 |
| Days of sales outstanding (DSO) | days | 76.28 | 65.11 | 80.30 | 75.43 | 65.91 |
| Number of days of payables | days | 83.01 | 74.32 | 75.56 | 84.00 | 82.75 |
| Cash conversion cycle | days | 60.37 | 55.59 | 87.56 | 63.74 | 44.44 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 67.09 + 76.28 – 83.01
= 60.37
The cash conversion cycle (CCC) of ScanSource Inc. has exhibited notable fluctuations over the specified period from June 30, 2021, to June 30, 2025. Initially, in 2021, the CCC was recorded at approximately 44.44 days. This value increased substantially in 2022 to approximately 63.74 days, reflecting a lengthening of the cycle by nearly 19 days. The upward trend continued into 2023, with the CCC reaching approximately 87.56 days, representing a significant elongation of the cycle by over 23 days from the prior year. This indicates a considerable delay in converting investments in inventory and receivables into cash.
Subsequently, in 2024, the cycle experienced a reversal, decreasing sharply to approximately 55.59 days. This reduction suggests an improvement in the company's working capital management and cash conversion efficiency. Despite this rebound, the CCC slightly increased again in 2025 to approximately 60.37 days, indicating a modest lengthening but remaining below the peak observed in 2023.
Overall, the pattern indicates periods of heightened inefficiency around 2023, followed by partial recovery in subsequent years. The oscillation in the CCC underscores variability in the company's inventory management, receivables collection, and payables payment cycles during this timeframe.
Peer comparison
Jun 30, 2025