Sandisk Corp (SNDK)
Cash conversion cycle
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 147.55 | 162.09 | 165.40 | 150.23 | 127.63 | — | — | — | 96.20 | 89.31 | 84.68 | 82.25 | 72.57 | 71.57 | 83.11 | 84.14 | 93.55 | 88.93 | 90.95 | 82.57 |
| Days of sales outstanding (DSO) | days | 56.28 | 52.22 | 46.08 | 53.97 | 51.22 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 54.36 | 27.24 | 24.37 | 47.12 | 23.31 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 149.46 | 187.06 | 187.11 | 157.08 | 155.54 | 0.00 | 0.00 | 0.00 | 96.20 | 89.31 | 84.68 | 82.25 | 72.57 | 71.57 | 83.11 | 84.14 | 93.55 | 88.93 | 90.95 | 82.57 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 147.55 + 56.28 – 54.36
= 149.46
The analysis of Sandisk Corp's cash conversion cycle (CCC) over the observed period reveals notable fluctuations with several key trends. Between June 30, 2013, and March 31, 2014, the CCC exhibited a slight upward trend, rising from approximately 82.57 days to a peak of 93.55 days. This indicates a gradual elongation in the time it takes for the company to convert investments in inventory and receivables into cash, possibly reflecting changes in operational efficiency, inventory management, or receivables collection.
From June 30, 2014, through December 31, 2015, the CCC demonstrated a cyclical pattern with some periods of reduction. Notably, it decreased substantially to 71.57 days as of December 31, 2014, suggesting improved operational efficiency or shorter receivables and inventory periods. However, this downward trend was not sustained, as the CCC increased again to 89.31 days by the end of 2015 and further to 96.20 days by March 31, 2016, indicating a reversal in operational efficiency during this period.
An apparent anomaly occurs in the period specified as September 30, 2023, through March 31, 2024, where the CCC records a value of zero. This could potentially represent a data placeholder or a reporting anomaly, as a zero-day CCC is unusual unless the company operates exceptionally liquid and fast-turnover processes or temporarily suspended operations.
Post this period, the CCC exhibits a sharp and significant increase, reaching 155.54 days as of June 30, 2024, and further extending to approximately 187.11 days by December 2024. This substantial elongation suggests a deterioration in operational efficiency, with longer durations to convert inventory and receivables into cash, possibly due to supply chain disruptions, inventory build-ups, or extended credit terms.
The trend continues into 2025, where the CCC remains elevated but shows some signs of moderation, decreasing to around 149.46 days by June 30, 2025. Overall, the data indicates periods of operational improvement followed by significant elongation, with recent trends pointing towards increased working capital requirements or inventory holding periods.
In conclusion, Sandisk Corp's cash conversion cycle has experienced considerable variability over the analyzed period, with recent years marked by prolonged cycles that may reflect strategic operational shifts, market conditions, or external disruptions impacting liquidity management. The periods where the CCC approached or reached very high levels warrant close scrutiny to understand underlying causes and their implications on liquidity and working capital management.
Peer comparison
Jun 30, 2025