Williams-Sonoma Inc (WSM)
Cash conversion cycle
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 117.78 | 102.30 | 218.63 | 106.37 | 243.59 |
| Days of sales outstanding (DSO) | days | — | — | 5.79 | — | 4.87 |
| Number of days of payables | days | — | — | 106.63 | — | 85.03 |
| Cash conversion cycle | days | 117.78 | 102.30 | 117.79 | 106.37 | 163.42 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 117.78 + — – —
= 117.78
The cash conversion cycle of Williams-Sonoma Inc has shown fluctuations over the past few years. In January 2023, the cash conversion cycle was 163.42 days, indicating a longer period to convert its resources into cash. However, by January 2024, the cycle decreased to 117.79 days before further improving to 102.30 days by January 31, 2024. This suggests a more efficient management of working capital and quicker conversion of inventory and receivables into cash. In the most recent period of January 31, 2025, the cycle increased slightly to 117.78 days, signaling a potential slowdown in the cash conversion process. It is important for Williams-Sonoma Inc to continue monitoring and managing its cash conversion cycle effectively to enhance liquidity and operational efficiency.