Toro Co (TTC)
Cash conversion cycle
| Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | Feb 3, 2023 | Oct 31, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 31, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 31, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Oct 31, 2019 | Aug 2, 2019 | May 3, 2019 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 108.75 | 97.81 | 97.43 | 99.58 | 96.57 | 89.40 | 88.21 | 84.92 | 77.76 | 73.08 | 71.87 | 81.42 | 80.13 | 82.13 | 88.12 | 90.58 | 84.01 | 90.79 | 104.02 | 81.40 |
| Days of sales outstanding (DSO) | days | 42.96 | 34.34 | 31.59 | 29.38 | 27.11 | 29.96 | 39.20 | 33.50 | 28.81 | 28.80 | 38.79 | 32.29 | 28.35 | 33.04 | 44.81 | 35.59 | 31.26 | 38.72 | 56.67 | 30.79 |
| Number of days of payables | days | 38.97 | 38.66 | 35.67 | 41.83 | 53.17 | 46.35 | 56.07 | 48.43 | 53.00 | 45.17 | 48.20 | 43.93 | 44.70 | 33.64 | 40.39 | 42.66 | 41.15 | 44.57 | 66.65 | 55.00 |
| Cash conversion cycle | days | 112.74 | 93.48 | 93.35 | 87.13 | 70.51 | 73.00 | 71.34 | 69.99 | 53.57 | 56.71 | 62.46 | 69.78 | 63.78 | 81.53 | 92.54 | 83.51 | 74.11 | 84.94 | 94.05 | 57.19 |
February 2, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 108.75 + 42.96 – 38.97
= 112.74
The cash conversion cycle of Toro Co. has shown some fluctuations over the past eight quarters. In Q1 2024, the company's cash conversion cycle was at 136.24 days, representing an increase from the previous quarter Q4 2023 which saw a cycle of 113.35 days.
The longest cash conversion cycle over the period was in Q1 2023 at 105.61 days, while the shortest cycle was in Q2 2022 at 81.38 days. Overall, the company's cash conversion cycle has demonstrated volatility, indicating potential challenges in managing its working capital efficiently.
It is essential for Toro Co. to closely monitor and analyze the factors impacting its cash conversion cycle to optimize its operations and liquidity management. By reducing the time it takes to convert inventory and receivables into cash, the company can improve its overall financial performance and stability.