Winnebago Industries Inc (WGO)
Cash conversion cycle
| 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 | Aug 31, 2019 | May 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 43.74 | 41.38 |
| Days of sales outstanding (DSO) | days | 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 | 29.05 | 34.01 |
| Number of days of payables | days | 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 | 17.75 | 18.28 |
| Cash conversion cycle | days | 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 | 55.04 | 57.11 |
February 24, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.94 + 28.35 – 17.17
= 69.13
The cash conversion cycle of Winnebago Industries Inc has exhibited fluctuations over the past few quarters. The average duration for the company to convert its investments in inventory and other resources into cash receipts from customers has ranged between 42.73 days to 69.13 days in the most recent reporting period.
In general, a shorter cash conversion cycle is seen as favorable as it indicates that the company is able to efficiently manage its working capital and turn inventory and other resources into cash quickly. On the other hand, a longer cash conversion cycle may signify inefficiencies in managing working capital, which could lead to potential liquidity issues.
Winnebago Industries Inc's cash conversion cycle has shown some volatility, potentially indicating fluctuations in the company's inventory management, sales, or accounts receivable processes. It is important for the company to monitor and analyze these fluctuations closely to identify areas for improvement in working capital management.
Peer comparison
Feb 24, 2024