Seagate Technology PLC (STX)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 95.03 | 98.04 | 97.75 | 90.18 | 86.49 | 72.02 | 66.38 | 68.97 | 66.32 | 61.74 | 77.27 | 69.73 | 63.88 | 55.62 | 52.85 | 56.60 | 62.46 | 64.43 | 64.58 | 54.37 |
| Days of sales outstanding (DSO) | days | 26.58 | 33.48 | 37.83 | 30.03 | 26.62 | 33.45 | 27.95 | 30.70 | 43.14 | 32.78 | 37.88 | 47.95 | 40.72 | 42.64 | 41.36 | 39.57 | 35.05 | 28.74 | 30.85 | 38.73 |
| Number of days of payables | days | 94.70 | 104.30 | 125.67 | 129.99 | 121.42 | 110.72 | 95.34 | 96.98 | 93.79 | 56.10 | 82.37 | 91.70 | 84.13 | 78.31 | 78.56 | 81.10 | 90.74 | 84.57 | 87.61 | 86.07 |
| Cash conversion cycle | days | 26.91 | 27.22 | 9.91 | -9.78 | -8.31 | -5.26 | -1.01 | 2.69 | 15.67 | 38.42 | 32.78 | 25.99 | 20.47 | 19.95 | 15.64 | 15.08 | 6.77 | 8.60 | 7.81 | 7.02 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 95.03 + 26.58 – 94.70
= 26.91
The cash conversion cycle (CCC) of Seagate Technology PLC has exhibited significant fluctuations over the period from June 2020 to March 2025. Initially, in June 2020, the CCC stood at approximately 7.02 days, indicating that the company's operating cycle efficiently managed the conversion of inventory into cash within about a week. Throughout the subsequent quarters, the cycle showed a gradual increase, reaching a peak of nearly 39 days by the end of December 2022. This prolonged cycle reflects a period during which the company’s working capital was tied up longer within inventory and receivables, potentially indicating increased manufacturing lead times, slower collection periods, or strategic inventory build-up.
Following this peak, a noteworthy reduction in the CCC was observed, culminating in negative values starting from March 2023 through June 2024. The negative CCC in these periods suggests that the company's accounts payable turnaround outpaced the combined duration of inventory and receivables, effectively allowing Seagate to generate cash faster than it needs to fund operational cycles. This shift could be indicative of aggressive supplier payment strategies, improved receivables collection, or inventory management efficiencies.
However, from September 2024 onward, the CCC rose again into positive territory, reaching approximately 27.22 days by December 2024 and 26.91 days in March 2025. This recent increase implies a return to a more traditional cycle with greater cash tied up in inventory or receivables, possibly due to changes in supplier terms, customer payment behavior, or operational adjustments.
Overall, the trend reflects a period of considerable operational and financial strategic adjustments. The initial stability, subsequent expansion of the cycle, followed by aggressive working capital management resulting in negative CCC, and later stabilization, suggests active management of receivables, payables, and inventory. These variations indicate responsiveness to market conditions, supply chain considerations, and internal strategic shifts aimed at optimizing liquidity and working capital efficiency.
Peer comparison
Mar 31, 2025