SanDisk Corp (SNDK)
Cash conversion cycle
| 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 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.20 | 89.31 | 84.68 | 82.25 | 72.57 | 71.57 | 83.11 | 84.14 | 93.55 | 88.93 | 90.95 | 82.57 | 84.53 | 86.51 | 98.57 | 102.11 | 89.88 | 61.11 | 87.03 | 75.80 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 96.20 | 89.31 | 84.68 | 82.25 | 72.57 | 71.57 | 83.11 | 84.14 | 93.55 | 88.93 | 90.95 | 82.57 | 84.53 | 86.51 | 98.57 | 102.11 | 89.88 | 61.11 | 87.03 | 75.80 |
March 31, 2016 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.20 + — – —
= 96.20
The cash conversion cycle of SanDisk Corp over the provided periods fluctuated between 61.11 days and 102.11 days. This metric measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, highlighting the efficiency of its operations in managing working capital.
During the analyzed periods, the company's cash conversion cycle peaked at 102.11 days in June 30, 2012, indicating a longer period between investing in inventory and receiving cash from sales. Conversely, the lowest cycle of 61.11 days was observed on December 31, 2011, suggesting a more efficient working capital management process.
Overall, fluctuations in the cash conversion cycle can be influenced by factors such as inventory management, accounts receivable collection, and accounts payable turnover. A longer cycle may indicate inefficiencies in managing these components, potentially leading to increased financing costs or cash flow constraints. Conversely, a shorter cycle implies better working capital management and potentially improved liquidity and profitability for the company.