Seagate Technology PLC (STX)
Cash conversion cycle
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 83.58 | 79.90 | 66.51 | 60.41 | 62.71 | 60.32 | 56.50 | 71.74 | 65.11 | 59.75 | 52.11 | 49.50 | 52.93 | 58.32 | 60.20 | 60.36 | 50.77 | 50.22 | 53.91 | 48.84 |
| Days of sales outstanding (DSO) | days | 31.78 | 27.76 | 34.81 | 34.01 | 38.95 | 42.33 | 32.18 | 37.92 | 47.95 | — | 42.71 | — | 39.57 | — | — | — | — | — | — | — |
| Number of days of payables | days | 120.47 | 112.16 | 102.26 | 86.77 | 88.18 | 85.31 | 51.34 | 76.48 | 85.62 | 78.70 | 73.36 | 73.58 | 75.83 | 84.73 | 79.02 | 81.90 | 80.38 | 83.39 | 87.82 | 82.10 |
| Cash conversion cycle | days | -5.12 | -4.51 | -0.94 | 7.65 | 13.48 | 17.34 | 37.33 | 33.18 | 27.44 | -18.95 | 21.45 | -24.08 | 16.67 | -26.41 | -18.82 | -21.53 | -29.61 | -33.17 | -33.91 | -33.26 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 83.58 + 31.78 – 120.47
= -5.12
The cash conversion cycle (CCC) for Seagate Technology PLC has varied significantly over the past few quarters. The CCC represents the time it takes for a company to convert its investments in inventory into cash flows from sales. A negative CCC indicates that the company is efficient in managing its working capital.
Looking at the data, we can see that Seagate had a negative CCC in most recent quarters, indicating efficient working capital management. The company was able to convert its inventory into cash quickly, resulting in a shorter cash conversion cycle.
However, the CCC was positive in the quarter ended September 30, 2023, indicating that the company took longer to convert inventory into cash during that period. This may have been influenced by factors such as changes in production schedules, sales patterns, or inventory management practices.
The trend in the CCC shows fluctuations throughout the periods analyzed, with some quarters showing longer cycles than others. Overall, Seagate should continue monitoring its CCC closely to maintain efficient working capital management and strive for shorter cash conversion cycles, which can improve liquidity and financial performance.
Peer comparison
Jun 30, 2024