Signet Jewelers Ltd (SIG)
Cash conversion cycle
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.77 | 170.71 | 164.85 | 170.20 | 160.32 | 99.68 | 90.94 | 91.94 | 107.13 | 128.95 | 123.85 | 169.20 | 166.27 | 170.44 | 173.13 | 187.73 | 142.38 | 230.75 | 231.69 | 193.13 |
| Days of sales outstanding (DSO) | days | 0.95 | 0.99 | 1.27 | 3.10 | 1.12 | 11.53 | 7.10 | 7.42 | 2.02 | 6.86 | 3.63 | 8.33 | 9.91 | 11.97 | 20.39 | 1.96 | 2.31 | 1.24 | 1.30 | 1.36 |
| Number of days of payables | days | 32.94 | 52.53 | 44.93 | 54.68 | 65.53 | 32.84 | 28.62 | 36.54 | 46.79 | 52.11 | 45.14 | 58.67 | 66.48 | 43.78 | 23.86 | 25.83 | 13.92 | 30.58 | 22.85 | 19.22 |
| Cash conversion cycle | days | 54.79 | 119.17 | 121.19 | 118.62 | 95.91 | 78.38 | 69.42 | 62.83 | 62.36 | 83.70 | 82.34 | 118.86 | 109.70 | 138.63 | 169.66 | 163.86 | 130.77 | 201.41 | 210.13 | 175.27 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.77 + 0.95 – 32.94
= 54.79
The cash conversion cycle of Signet Jewelers Ltd has shown some fluctuations over the past few quarters. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has varied between 54.79 days and 210.13 days over the last 20 quarters.
It is important to note that a shorter cash conversion cycle is generally preferred as it indicates that the company is able to quickly sell its inventory and collect cash from customers. On the contrary, a longer cash conversion cycle may imply inefficiencies in managing inventory, sales, and collection processes.
In the most recent quarter, the cash conversion cycle was 54.79 days, indicating an improvement from the previous quarter, where it was 119.17 days. This suggests that the company was able to reduce the time it takes to convert its investments into cash, which can positively impact its liquidity and working capital management.
Overall, a consistent monitoring of the cash conversion cycle can provide insights into the efficiency of Signet Jewelers Ltd's operations and its ability to manage working capital effectively.