Synnex Corporation (SNX)

Cash conversion cycle

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Days of inventory on hand (DOH)	days	48.67	56.62	81.57	52.16	51.90
Days of sales outstanding (DSO)	days	65.31	55.16	95.94	70.72	75.16
Number of days of payables	days	90.89	87.37	147.78	72.89	64.17
Cash conversion cycle	days	23.08	24.41	29.73	49.99	62.89

November 30, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 48.67 + 65.31 – 90.89
= 23.08

The cash conversion cycle of TD Synnex Corp has exhibited variations over the past five years. The cycle decreased in the most recent fiscal year, standing at 29.19 days compared to 29.21 days in the prior year. This improvement indicates that the company has been more efficient in managing its working capital and converting inventory to sales, thereby reducing the time it takes to generate cash from its operations.

In contrast, the cash conversion cycle was notably higher in the fiscal years 2019 and 2020, reaching 55.45 days and 41.30 days, respectively. This suggests that the company faced challenges in effectively managing its cash flow and working capital during those periods.

Overall, the trend in the cash conversion cycle indicates that TD Synnex Corp has made progress in optimizing its working capital efficiency and has been successful in shortening the time it takes to convert its inventory and receivables into cash, ultimately improving its liquidity position.