SanDisk Corp (SNDK)
Cash conversion cycle
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 89.31 | 71.57 | 83.66 | 81.26 | 96.54 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 89.31 | 71.57 | 83.66 | 81.26 | 96.54 |
December 31, 2015 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.31 + — – —
= 89.31
The cash conversion cycle of SanDisk Corp has shown fluctuations over the years based on the data provided. In 2011, the company had a cash conversion cycle of 96.54 days, indicating that it took approximately 96.54 days to convert its investments in inventory into cash receipts from customers. This figure decreased to 81.26 days in 2012, suggesting an improvement in the company's efficiency in managing its working capital.
In 2013, the cash conversion cycle slightly increased to 83.66 days, which could be a sign of extended payment terms to suppliers or slower collection from customers. The following year, in 2014, the cycle decreased to 71.57 days, indicating a more efficient management of inventory, accounts receivable, and accounts payable.
However, in 2015, the cash conversion cycle increased to 89.31 days, showing a potential increase in the time it takes for the company to convert its investments in inventory back into cash. Overall, the trend of the cash conversion cycle for SanDisk Corp has been fluctuating, with some improvements in efficiency and some periods of slight deterioration.
Peer comparison
Dec 31, 2015