Sonos Inc (SONO)
Cash conversion cycle
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.67 | 44.18 | 50.55 | 47.35 | 91.05 | 76.06 | 84.75 | 77.13 | 117.71 | 87.30 | 68.55 | 55.59 | 50.71 | 40.86 | 39.85 | 26.98 | 55.97 | 27.71 | 36.62 | 36.37 |
| Days of sales outstanding (DSO) | days | 10.65 | 30.49 | 16.41 | 18.41 | 14.75 | 24.86 | — | 22.52 | 21.08 | — | — | — | 21.43 | — | — | — | — | — | — | — |
| Number of days of payables | days | 56.04 | 51.14 | 34.21 | 48.26 | 49.40 | 37.99 | 47.70 | 59.48 | 87.00 | 80.10 | 70.26 | 92.48 | 58.89 | 55.29 | 58.12 | 73.35 | 77.48 | 33.38 | 26.74 | 61.52 |
| Cash conversion cycle | days | 21.28 | 23.53 | 32.75 | 17.50 | 56.41 | 62.93 | 37.05 | 40.17 | 51.79 | 7.20 | -1.71 | -36.90 | 13.25 | -14.43 | -18.27 | -46.37 | -21.51 | -5.66 | 9.89 | -25.16 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 66.67 + 10.65 – 56.04
= 21.28
The cash conversion cycle for Sonos Inc has fluctuated over the past few quarters, indicating changes in the efficiency of the company's working capital management.
In the most recent quarter ending Sep 30, 2024, the cash conversion cycle was 21.28 days, showing a slight improvement compared to the previous quarter. This suggests that Sonos Inc is taking fewer days to convert its investments in inventory and receivables into cash.
Looking back at the trend, there was a notable increase in the cash conversion cycle in the Mar 31, 2023 quarter, reaching 32.75 days. This indicates that the company took longer to convert its resources into cash during that period.
On the contrary, in the Mar 31, 2022 quarter, the cash conversion cycle was negative (-1.71 days), implying that Sonos Inc was able to generate cash before paying its suppliers and making investments in inventory.
Overall, analyzing the cash conversion cycle data for Sonos Inc reveals fluctuations in the company's efficiency in managing its working capital over different time periods. Further analysis and comparison with industry benchmarks could provide insights into Sonos Inc's cash management performance.
Peer comparison
Sep 30, 2024