Sandisk Corp (SNDK)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 147.55 | 127.63 | 146.43 | 111.69 | 89.31 |
| Days of sales outstanding (DSO) | days | 53.00 | 51.22 | 32.33 | 48.24 | — |
| Number of days of payables | days | 25.98 | 43.74 | 40.40 | 44.18 | — |
| Cash conversion cycle | days | 174.57 | 135.11 | 138.35 | 115.74 | 89.31 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 147.55 + 53.00 – 25.98
= 174.57
The cash conversion cycle (CCC) of Sandisk Corp has exhibited notable fluctuations over the period from December 31, 2015, to June 30, 2025. Starting at approximately 89.31 days at the end of 2015, the CCC increased steadily over the subsequent years. By June 30, 2022, it had risen to roughly 115.74 days, indicating a lengthening of the cycle and potentially reflecting changes in operating efficiency, inventory management, or accounts receivable and payable periods.
This upward trend continued through to June 30, 2023, with the CCC reaching approximately 138.35 days. The duration remained relatively stable into June 30, 2024, at about 135.11 days, suggesting a temporary stabilization after the previous increase. However, by June 30, 2025, the cycle extended further, reaching approximately 174.57 days, representing a substantial lengthening compared to the baseline in 2015.
Overall, the data indicates that Sandisk Corp’s cash conversion cycle has experienced a significant elongation over the decade, particularly in the last two years. This trend suggests potential challenges in managing inventory turnover, receivables collection, or payable cycles, or could reflect strategic shifts affecting cash flow efficiencies. The increasing cycle duration may result in increased working capital requirements and could impact liquidity positions if not managed carefully.
Peer comparison
Jun 30, 2025