John Wiley & Sons (WLY)
Cash conversion cycle
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.67 | 5.67 | 5.84 | 5.86 | 5.80 | 6.11 | 6.61 | 6.36 | 6.76 | 7.78 | 7.96 | 8.28 | 9.34 | 7.58 | 7.91 | 8.54 | 8.26 | 6.86 | 7.91 | 8.75 |
| Days of sales outstanding (DSO) | days | 43.74 | 31.25 | 28.10 | 28.84 | 57.06 | 51.61 | 46.62 | 49.95 | 58.82 | 47.54 | 52.66 | 52.30 | 58.96 | 54.53 | 53.90 | 56.72 | 62.35 | 60.22 | 47.49 | 57.05 |
| Number of days of payables | days | 12.03 | 8.99 | 9.40 | 8.45 | 15.91 | 5.96 | 8.87 | 10.78 | 14.31 | 15.04 | 10.27 | 12.76 | 21.04 | 13.60 | 10.30 | 9.96 | 17.74 | 10.16 | 13.08 | 11.76 |
| Cash conversion cycle | days | 37.37 | 27.93 | 24.54 | 26.25 | 46.95 | 51.75 | 44.35 | 45.53 | 51.27 | 40.29 | 50.35 | 47.82 | 47.27 | 48.52 | 51.51 | 55.30 | 52.87 | 56.92 | 42.32 | 54.04 |
April 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.67 + 43.74 – 12.03
= 37.37
The cash conversion cycle for John Wiley & Sons has shown fluctuations over the past several periods. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
In the most recent period of April 30, 2024, the cash conversion cycle stood at 37.37 days. This indicates that on average, it took the company approximately 37 days to convert its investments into cash receipts.
Looking back at historical data, the cash conversion cycle has varied, with some periods showing shorter cycles (e.g., January 31, 2024, and October 31, 2023), while others had longer cycles (e.g., January 31, 2023, and July 31, 2020). These fluctuations could be attributed to changes in inventory management, accounts receivable collection efficiency, and accounts payable turnover.
Overall, monitoring the cash conversion cycle is important for understanding the efficiency of a company's working capital management. A shorter cycle indicates quicker conversion of investments into cash, which can lead to improved liquidity and financial health. Conversely, a longer cycle may imply inefficiencies that could impact cash flow and profitability.
Peer comparison
Apr 30, 2024