John Wiley & Sons (WLY)
Cash conversion cycle
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.73 | 5.86 | 7.16 | 9.01 | 8.02 |
| Days of sales outstanding (DSO) | days | 43.74 | 57.06 | 58.82 | 58.87 | 62.39 |
| Number of days of payables | days | 12.17 | 16.08 | 15.15 | 20.30 | 17.23 |
| Cash conversion cycle | days | 37.30 | 46.84 | 50.83 | 47.58 | 53.18 |
April 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.73 + 43.74 – 12.17
= 37.30
The cash conversion cycle of John Wiley & Sons has shown a decreasing trend over the past five years, indicating improving efficiency in managing its working capital. The company was able to convert its resources into cash at a faster rate, moving from 53.18 days in 2020 to 37.30 days in 2024.
This improvement suggests that the company has been able to reduce the time it takes for inventory to turn into receivables and ultimately into cash. A shorter cash conversion cycle implies better liquidity and operational efficiency as the company is able to generate cash more quickly from its operating activities.
Overall, the decreasing trend in the cash conversion cycle for John Wiley & Sons indicates an improvement in the management of its working capital and a more efficient use of resources to generate cash inflows.
Peer comparison
Apr 30, 2024