Synopsys Inc (SNPS)

Cash conversion cycle

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Days of inventory on hand (DOH)	days	101.97	112.48	112.84	119.38	105.60	95.95	86.14	73.89	72.72	78.96	82.08	85.33	97.00	103.34	100.02	104.07	88.34	77.48	81.38	71.77
Days of sales outstanding (DSO)	days	57.01	47.18	49.23	63.36	62.91	44.01	53.83	73.06	60.50	50.34	55.45	84.18	52.45	51.73	56.09	75.40	82.37	66.38	68.15	86.43
Number of days of payables	days	58.43	22.89	27.56	23.96	50.15	22.58	28.35	23.50	12.90	25.87	28.62	11.70	11.61	17.70	19.19	11.44	13.78	18.00	25.31	12.88
Cash conversion cycle	days	100.55	136.78	134.50	158.78	118.36	117.38	111.62	123.45	120.33	103.43	108.90	157.80	137.84	137.36	136.93	168.03	156.93	125.86	124.23	145.32

October 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 101.97 + 57.01 – 58.43
= 100.55

The cash conversion cycle for Synopsys Inc has varied over the past several quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the data provided, we can observe fluctuations in the cash conversion cycle:

- The cycle ranged from a low of 100.55 days in October 2024 to a high of 168.03 days in January 2021.
- Generally, a shorter cash conversion cycle indicates that the company is able to more quickly convert its investments into cash, which can be a positive sign of operational efficiency.
- Conversely, a longer cash conversion cycle may suggest issues with inventory management, collection of receivables, or supplier payment terms.

It would be advisable for Synopsys Inc to closely monitor the factors affecting its cash conversion cycle to ensure optimal working capital management and overall financial performance.