Synnex Corporation (SNX)

Cash conversion cycle

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Days of inventory on hand (DOH)	days	55.53	48.67	56.62	81.57	52.16
Days of sales outstanding (DSO)	days	64.58	65.31	55.16	95.94	70.72
Number of days of payables	days	101.08	90.89	87.37	147.78	72.89
Cash conversion cycle	days	19.03	23.08	24.41	29.73	49.99

November 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.53 + 64.58 – 101.08
= 19.03

Synnex Corporation has shown a decreasing trend in its cash conversion cycle over the past five years. The cash conversion cycle decreased from 49.99 days as of November 30, 2020, to 19.03 days as of November 30, 2024. This indicates that the company has been managing its cash, accounts receivable, and accounts payable more efficiently over the years, resulting in a shorter time between the outflow of cash for production and the inflow of cash from sales. This improvement suggests that Synnex Corporation has been more effective in converting its investments in inventory and accounts receivable into cash, potentially highlighting better liquidity and working capital management.