Semtech Corporation (SMTC)
Cash conversion cycle
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 131.89 | 92.44 | 31.02 | 272.73 | 126.12 |
| Days of sales outstanding (DSO) | days | — | — | 71.67 | — | 83.32 |
| Number of days of payables | days | — | — | 9.64 | — | 61.13 |
| Cash conversion cycle | days | 131.89 | 92.44 | 93.05 | 272.73 | 148.31 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 131.89 + — – —
= 131.89
The cash conversion cycle of Semtech Corporation has shown variability over the years.
As of January 29, 2023, the cash conversion cycle was 148.31 days, representing the time it took for the company to convert its investments in inventory and other resources into cash flows from customers.
However, by January 31, 2023, the cash conversion cycle significantly increased to 272.73 days, indicating an extended period between cash outflows for inventory and cash inflows from sales.
The trend reversed by January 28, 2024, with the cash conversion cycle decreasing to 93.05 days and further improving to 92.44 days by January 31, 2024. This decline suggests more efficient management of working capital and quicker conversion of inventory and receivables into cash.
By January 31, 2025, the cash conversion cycle slightly increased to 131.89 days, which is still lower than the initial 2023 levels but indicates a longer cycle compared to 2024.
Overall, Semtech Corporation has experienced fluctuations in its cash conversion cycle, with improvements in efficiency seen in 2024 compared to 2023. Monitoring and managing the components of the cash conversion cycle will be crucial for optimizing working capital and cash flow management in the future.
Peer comparison
Jan 31, 2025