Seagate Technology PLC (STX)
Cash conversion cycle
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 89.13 | 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 |
| Days of sales outstanding (DSO) | days | 38.48 | 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 |
| Number of days of payables | days | 99.28 | 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 |
| Cash conversion cycle | days | 28.33 | 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 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.13 + 38.48 – 99.28
= 28.33
The provided data reflects significant fluctuations in Seagate Technology PLC's cash conversion cycle (CCC) over the analyzed period from September 2020 through June 2025. Initially, the CCC was relatively stable, measuring 7.81 days as of September 2020, and exhibiting moderate increases through December 2021, reaching a peak of 38.42 days on December 31, 2022. This upward trend indicates a lengthening of the time it takes for the company to convert its investments in inventory and receivables into cash, potentially reflecting extended inventory holding periods or delays in collections.
However, a notable shift occurs starting in March 2023, where the CCC drops sharply to 15.67 days, followed by an even more dramatic decline into negative territory, reaching -5.26 days by December 2023. Negative CCC values suggest the company is collecting receivables or realizing cash flows faster than it is paying its suppliers, pointing toward improved operational efficiency or changes in payment and collection cycles.
This negative trend persists into March 2024 and June 2024, with CCC at -8.31 days and -9.78 days, respectively. Subsequently, there is a reversal into positive territory in September 2024, with a CCC of 9.91 days, and this upward movement continues through December 2024 and into mid-2025, reaching values of 27.22 days, 26.91 days, and 28.33 days respectively.
Overall, the observed pattern indicates periods of operational efficiency gains, particularly from March 2023 onward, characterized by a swift turnaround of receivables and inventory, leading to negative or very low CCC values. The subsequent increase towards the end of 2024 and into 2025 reflects a normalization or elongation in the collection and payment cycles. This dynamic behavior underscores significant operational and possibly strategic changes within the company's supply chain and receivables management over the analyzed period.
Peer comparison
Jun 30, 2025