ViaSat Inc (VSAT)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.85 | 116.63 | 95.37 | 207.50 | 180.05 |
| Days of sales outstanding (DSO) | days | 117.95 | 36.62 | 48.36 | 39.88 | 54.25 |
| Number of days of payables | days | 47.75 | 117.93 | 96.72 | 89.45 | 112.28 |
| Cash conversion cycle | days | 123.05 | 35.32 | 47.01 | 157.94 | 122.02 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.85 + 117.95 – 47.75
= 123.05
The cash conversion cycle of ViaSat Inc has shown fluctuations over the past five years, indicating variations in the efficiency of its cash management and working capital practices.
In March 2024, the cash conversion cycle of 123.05 days increased significantly compared to the previous year, suggesting a potential delay in converting inventory and receivables into cash, or an increase in the payment cycle for liabilities.
The significant improvement in the cash conversion cycle in March 2023 to 35.32 days reflects a more efficient management of working capital, with reduced time taken to sell inventory, collect receivables, and pay off liabilities.
In March 2022, the cash conversion cycle increased to 47.01 days, which indicates a slightly longer time taken to convert inventories and receivables into cash compared to the previous year.
The cash conversion cycle in March 2021 spiked to 157.94 days, representing a substantial delay in cash conversion, which could be attributed to challenges in inventory management, collection of receivables, or payment of liabilities.
Similarly, in March 2020, the cash conversion cycle was 122.02 days, suggesting a prolonged cash conversion process during that period.
Overall, the fluctuating trend in ViaSat Inc's cash conversion cycle highlights the importance of closely monitoring working capital management to ensure efficient operations and cash flow optimization.
Peer comparison
Mar 31, 2024