United Natural Foods Inc (UNFI)
Cash conversion cycle
| 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 | Aug 3, 2019 | Apr 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 42.10 | 53.60 |
| Days of sales outstanding (DSO) | days | 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 | — | — | — | 18.31 | 22.16 |
| Number of days of payables | days | 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 | 29.45 | 35.63 |
| Cash conversion cycle | days | 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 | 30.96 | 40.13 |
January 27, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 42.52 + 12.36 – 31.68
= 23.20
The cash conversion cycle of United Natural Foods Inc. has shown fluctuations over the past eight quarters. It measures the average number of days it takes for the company to convert its investments in inventory into cash flow from sales. A shorter cash conversion cycle indicates more efficient management of working capital.
In Q2 2024, the cash conversion cycle decreased to 20.14 days from 22.14 days in Q1 2024, indicating an improvement in the company's efficiency in managing its working capital. However, compared to Q4 2023 where the cycle was 17.85 days, there was a slight increase.
Looking back at Q3 and Q2 of 2023, the cash conversion cycle was considerably higher at 20.78 days and 22.31 days respectively, suggesting potential working capital management challenges during that period. This trend reversed in Q1 2023 where the cycle decreased to 28.77 days, possibly indicating a delay in the sales collection process.
Overall, there have been fluctuations in the cash conversion cycle of United Natural Foods Inc. over the past eight quarters, with periods of improvement and challenges in working capital management. It would be advisable for the company to continue monitoring and optimizing its cash conversion cycle to enhance operational efficiency and profitability.
Peer comparison
Jan 27, 2024