Victoria's Secret & Co (VSCO)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 88.22 | 104.89 | 76.44 | 75.25 | 68.33 | 82.24 | 97.73 | 96.29 | 81.66 | 76.15 | 106.02 | 107.33 | 112.31 | 122.76 | 99.74 | 97.57 | 84.46 | 71.43 | 76.32 | 64.46 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 8.35 | — | — | 9.26 | — | 8.22 | — | 6.84 | — | 8.38 | — | 11.55 | — | 7.41 | — | — |
| Number of days of payables | days | — | — | — | — | 35.59 | — | — | 35.70 | — | 38.73 | — | 40.01 | — | 56.13 | — | 31.19 | — | 32.23 | — | — |
| Cash conversion cycle | days | 88.22 | 104.89 | 76.44 | 75.25 | 41.10 | 82.24 | 97.73 | 69.86 | 81.66 | 45.64 | 106.02 | 74.17 | 112.31 | 75.01 | 99.74 | 77.93 | 84.46 | 46.61 | 76.32 | 64.46 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.22 + — – —
= 88.22
The cash conversion cycle, a key indicator of a company's efficiency in managing its working capital, shows the time it takes for a firm to convert its investments in inventory and other resources into cash flows from sales. Looking at the data for Victoria's Secret & Co, the company's cash conversion cycle has shown fluctuations over the period analyzed.
From January 31, 2022, to July 30, 2022, the cash conversion cycle decreased from 64.46 days to 46.61 days, indicating an improvement in the firm's efficiency in managing its working capital during this period. However, this trend reversed from July 31, 2022, to January 31, 2023, with the cycle increasing to 112.31 days by the end of January 2023.
A notable decline in the cash conversion cycle was observed between July 29, 2023, and February 3, 2024, where the cycle dropped from 81.66 days to 41.10 days. This significant improvement suggests that Victoria's Secret & Co was able to streamline its working capital management processes during this period.
Subsequently, the cycle increased slightly by April 30, 2024, to 75.25 days, and remained relatively stable over the next reporting periods. The company's cash conversion cycle fluctuated between 76.44 days and 104.89 days from July 31, 2024, to October 31, 2024, indicating some variability in its working capital management efficiency during this time frame.
Overall, while Victoria's Secret & Co experienced fluctuations in its cash conversion cycle over the period analyzed, the company displayed periods of improvement in working capital management efficiency, as well as some variability in maintaining this performance. Further analysis and comparison with industry benchmarks could provide more insights into the company's working capital management effectiveness.
Peer comparison
Jan 31, 2025