Winnebago Industries Inc (WGO)
Cash conversion cycle
| Aug 31, 2024 | May 25, 2024 | Feb 24, 2024 | Nov 25, 2023 | Aug 26, 2023 | May 27, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.68 | 56.49 | 57.94 | 58.99 | 53.70 | 53.42 | 49.35 | 47.67 | 43.81 | 41.84 | 44.89 | 44.78 | 38.66 | 40.86 | 40.20 | 40.26 | 29.65 | 34.21 | 42.10 | 52.51 |
| Days of sales outstanding (DSO) | days | 23.43 | 24.54 | 28.35 | 21.21 | 19.90 | 19.35 | 23.21 | 15.71 | 18.87 | 28.57 | 32.43 | 24.35 | 25.77 | 25.19 | 30.86 | 33.26 | 34.55 | 28.10 | 29.47 | 29.43 |
| Number of days of payables | days | 18.36 | 17.15 | 17.17 | 14.73 | 16.76 | 13.72 | 15.07 | 11.48 | 18.12 | 19.77 | 20.20 | 17.26 | 20.38 | 21.23 | 20.88 | 18.87 | 21.47 | 14.73 | 17.56 | 18.57 |
| Cash conversion cycle | days | 60.75 | 63.89 | 69.13 | 65.47 | 56.84 | 59.06 | 57.49 | 51.89 | 44.56 | 50.64 | 57.12 | 51.86 | 44.05 | 44.83 | 50.18 | 54.65 | 42.73 | 47.57 | 54.01 | 63.37 |
August 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.68 + 23.43 – 18.36
= 60.75
The cash conversion cycle of Winnebago Industries Inc has shown some fluctuation over the past 20 periods. On average, the company takes around 55 days to convert its investments in raw materials and production into cash collected from customers. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash flows.
Looking at the data, there is a general trend towards a decreasing cash conversion cycle from November 2019 to August 2022, suggesting improvements in the company's efficiency in managing its inventory, receivables, and payables during this period.
However, from August 2022 to February 2024, there seems to be an increasing trend in the cash conversion cycle, peaking at 69.13 days in February 2024. This increase could indicate potential issues in managing working capital efficiently, resulting in a longer time to convert investments into cash.
It is important for Winnebago Industries Inc to closely monitor its cash conversion cycle to ensure that it remains at an optimal level, as a longer cycle can tie up valuable capital and lead to liquidity issues. By effectively managing inventory levels, collecting receivables promptly, and negotiating favorable payment terms with suppliers, the company can work towards reducing its cash conversion cycle and improving its overall financial health.
Peer comparison
Aug 31, 2024