United Natural Foods Inc (UNFI)
Cash conversion cycle
| Aug 3, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.59 | 41.10 | 42.52 | 48.72 | 42.36 | 34.66 | 35.69 | 39.79 | 34.66 | 38.46 | 37.34 | 39.78 | 35.60 | 36.11 | 34.59 | 50.72 | 48.17 | 41.82 | 46.62 | 38.65 |
| Days of sales outstanding (DSO) | days | 11.67 | 12.12 | 12.36 | 12.57 | 11.00 | 12.24 | 12.38 | 17.08 | 15.58 | 16.04 | 16.60 | 17.02 | 15.28 | — | 15.50 | 16.14 | 15.73 | — | — | — |
| Number of days of payables | days | 22.93 | 30.88 | 31.68 | 35.58 | 32.92 | 25.83 | 25.53 | 27.77 | 25.64 | 25.77 | 26.74 | 29.73 | 26.04 | 25.19 | 25.12 | 35.86 | 34.49 | 35.44 | 31.95 | 26.70 |
| Cash conversion cycle | days | 18.34 | 22.34 | 23.20 | 25.71 | 20.44 | 21.07 | 22.54 | 29.09 | 24.61 | 28.73 | 27.20 | 27.07 | 24.83 | 10.92 | 24.98 | 31.00 | 29.40 | 6.39 | 14.68 | 11.94 |
August 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.59 + 11.67 – 22.93
= 18.34
The cash conversion cycle of United Natural Foods Inc has fluctuated over the past several quarters, indicating varying efficiency in managing its working capital. The company's cash conversion cycle, which represents the time it takes to convert inventory into cash from sales, has ranged from as low as 6.39 days to as high as 31.00 days.
A lower cash conversion cycle implies that the company is able to efficiently manage its inventory, collect receivables quickly, and pay suppliers at a slower pace. Conversely, a higher cash conversion cycle suggests that the company takes longer to convert its inventory into sales and may face challenges in collecting receivables or managing payables effectively.
In the most recent quarter, the cash conversion cycle was 18.34 days, indicating that the company's working capital management improved compared to the previous quarter. However, it is important for United Natural Foods Inc to strive for consistency in its cash conversion cycle in order to optimize its liquidity and operational efficiency.
Peer comparison
Aug 3, 2024