Tractor Supply Company (TSCO)
Cash conversion cycle
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.63 | 115.56 | 113.98 | 117.43 | 103.54 | 107.72 | 101.70 | 116.72 | 106.16 | 110.18 | 104.27 | 111.42 | 96.90 | 101.15 | 94.91 | 103.25 | 94.90 | 108.77 | 101.75 | 124.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 105.63 | 115.56 | 113.98 | 117.43 | 103.54 | 107.72 | 101.70 | 116.72 | 106.16 | 110.18 | 104.27 | 111.42 | 96.90 | 101.15 | 94.91 | 103.25 | 94.90 | 108.77 | 101.75 | 124.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 105.63 + — – —
= 105.63
The cash conversion cycle of Tractor Supply Company has exhibited fluctuations over the periods provided in the data. The company's cash conversion cycle, which represents the time taken to convert raw materials into cash received from sales, ranged between 94.90 days to 124.87 days during the analyzed period.
The trend in the cash conversion cycle shows variability, with some periods showing a decrease in the number of days it takes for the company to convert its investments in inventory and other resources into cash receivables. For instance, there was a significant decrease in the cash conversion cycle from 124.87 days on March 31, 2020, to 94.90 days on December 31, 2020.
However, there are also periods where the cash conversion cycle increased, indicating potential inefficiencies in the company's operations. For example, the cycle increased from 94.91 days on June 30, 2021, to 116.72 days by March 31, 2023.
Overall, fluctuations in the cash conversion cycle may be influenced by factors such as inventory management efficiency, sales growth, accounts receivable collection practices, and payment terms with suppliers. Monitoring and managing the cash conversion cycle effectively is crucial for Tractor Supply Company to optimize its working capital and ensure liquidity.
Peer comparison
Dec 31, 2024