SpartanNash Co (SPTN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 7, 2023 | Sep 30, 2023 | Jul 15, 2023 | Jun 30, 2023 | Apr 22, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 8, 2022 | Sep 30, 2022 | Jun 30, 2022 | Apr 23, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 9, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.81 | 25.31 | 23.87 | 25.01 | 27.27 | 27.29 | 25.50 | 23.81 | 23.79 | 23.40 | 24.85 | 26.80 | 28.02 | 26.80 | 25.96 | 24.94 | 26.82 | 27.11 | 28.55 | 26.67 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | 17.04 | — | 14.90 | — | 14.39 | — | — | — | — | — | 14.89 | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | 23.81 | — | 20.64 | — | 19.45 | — | — | 22.15 | — | — | 21.48 | — | — | 25.46 | — |
| Cash conversion cycle | days | 24.81 | 25.31 | 23.87 | 25.01 | 27.27 | 20.51 | 25.50 | 18.07 | 23.79 | 18.34 | 24.85 | 26.80 | 5.87 | 26.80 | 25.96 | 18.36 | 26.82 | 27.11 | 3.09 | 26.67 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.81 + — – —
= 24.81
The cash conversion cycle of SpartanNash Co, as depicted by the provided data, fluctuated over the periods under observation. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory into cash flows from sales.
From September 30, 2021, to December 31, 2021, the cash conversion cycle was relatively stable, hovering around the 26-27 day range. Notably, there was a significant drop in the cycle to 18.36 days by April 23, 2022, followed by an increase back to 25.96 days by June 30, 2022.
As we move into 2023, the cycle experienced fluctuations, with some periods showing improvements in efficiency (e.g., 18.07 days on July 15, 2023) while others showed increases (e.g., 27.27 days on December 31, 2023). This variability continued into 2024, with the cycle averaging around 24-25 days.
Overall, SpartanNash Co's cash conversion cycle has shown variations, indicating changes in its efficiency in managing cash flows and inventory turnover over the observed periods. It is crucial for the company to monitor and manage this cycle effectively to ensure optimal working capital management and operational performance.
Peer comparison
Dec 31, 2024