Synnex Corporation (SNX)

Cash conversion cycle

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Days of inventory on hand (DOH)	days	55.53	52.80	49.52	48.41	46.84	48.00	52.63	56.62	61.47	63.63	72.68	81.57	50.28	46.83	47.63	52.16	35.37	44.66	46.73	51.90
Days of sales outstanding (DSO)	days	64.58	64.23	57.40	56.54	62.92	53.48	55.09	55.16	47.99	55.58	75.62	95.94	36.79	40.27	41.71	70.72	64.10	55.24	53.55	60.79
Number of days of payables	days	101.08	95.44	84.65	84.46	87.48	80.32	81.71	87.37	86.45	94.47	112.41	147.78	56.52	61.11	58.05	72.89	45.65	50.14	44.66	64.17
Cash conversion cycle	days	19.03	21.58	22.27	20.49	22.27	21.17	26.01	24.41	23.02	24.75	35.89	29.73	30.54	26.00	31.29	49.99	53.82	49.77	55.63	48.52

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 fluctuations in its cash conversion cycle over the periods covered in the data provided. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory into cash flows from sales.

From November 30, 2019, to May 31, 2022, Synnex Corporation's cash conversion cycle ranged from 24.75 days to 55.63 days, indicating variability in the efficiency of its working capital management.

The trend, however, demonstrates an overall improvement in the cash conversion cycle from 2019 to 2024, with a notable decrease from 48.52 days on November 30, 2019, to 19.03 days on November 30, 2024. This improvement could suggest enhancements in the company's inventory management, accounts receivable collection, and accounts payable policies.

As of the latest data available, the company's cash conversion cycle on November 30, 2024, stood at 19.03 days, indicating a efficient cycle and potentially strong working capital management practices. It would be beneficial for Synnex Corporation to continue monitoring and managing its cash conversion cycle to ensure optimal efficiency in its operations and cash flow management.