Walmart Inc (WMT)

Cash conversion cycle

		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	Apr 30, 2019
Days of inventory on hand (DOH)	days	40.88	48.25	43.30	44.01	44.53	52.04	49.34	51.66	48.08	48.94	41.10	40.16	39.03	45.84	36.72	37.28	41.10	48.02	41.41	42.25
Days of sales outstanding (DSO)	days	4.95	4.93	4.57	4.49	4.74	5.00	4.67	4.86	5.28	4.69	3.93	3.76	4.25	3.84	3.44	3.43	4.38	3.93	3.79	3.78
Number of days of payables	days	42.31	46.06	43.19	41.95	42.30	46.06	44.63	44.66	47.02	48.66	42.69	41.69	42.67	47.88	41.41	39.88	43.45	46.35	43.04	42.59
Cash conversion cycle	days	3.52	7.12	4.68	6.55	6.97	10.98	9.39	11.87	6.34	4.97	2.34	2.23	0.61	1.80	-1.24	0.83	2.03	5.60	2.16	3.44

January 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 40.88 + 4.95 – 42.31
= 3.52

The cash conversion cycle of Walmart Inc has varied over the past few quarters. The cycle measures the time it takes for a company to sell inventory, collect receivables, and pay its payables, reflecting its operational efficiency and liquidity management.

Looking at the data provided, Walmart Inc has shown fluctuations in its cash conversion cycle. For instance, in Jan 31, 2024, the cycle was relatively low at 3.52 days, indicating efficient management of working capital. However, in previous periods like Oct 31, 2023, the cycle increased to 7.12 days, suggesting potential delays in either collecting receivables or paying its payables.

The highest cash conversion cycle in this dataset was observed on Apr 30, 2020, at 11.87 days, indicating a longer time to convert its inventory and receivables into cash while managing payables. Conversely, the cycle was negative on Jul 31, 2020, and Jan 31, 2021, which could suggest a more efficient management of working capital during those specific periods.

Overall, fluctuations in Walmart Inc's cash conversion cycle imply changes in its operational efficiency, liquidity position, and working capital management practices over the analyzed periods.