Agilent Technologies Inc (A)
Cash conversion cycle
| Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 74.77 | 74.93 | 68.92 | 69.54 | 68.62 | 70.56 | 79.78 | 81.22 | 75.97 | 75.36 | 70.52 | 66.25 | 63.45 | 63.43 | 64.17 | 62.57 | 60.66 | 63.84 | 64.28 | 62.52 |
| Days of sales outstanding (DSO) | days | 82.74 | 68.96 | 69.45 | 70.55 | 74.60 | 70.71 | 73.31 | 77.49 | 80.29 | 74.34 | 69.91 | 68.97 | 72.32 | 67.61 | 68.38 | 72.75 | 78.04 | 66.07 | 62.82 | 68.49 |
| Number of days of payables | days | 41.54 | 38.08 | 31.77 | 32.85 | 27.82 | 29.75 | 34.65 | 39.48 | 42.45 | 41.63 | 37.85 | 35.80 | 34.09 | 32.26 | 34.32 | 32.99 | 29.83 | 26.62 | 28.54 | 29.13 |
| Cash conversion cycle | days | 115.97 | 105.82 | 106.60 | 107.24 | 115.40 | 111.52 | 118.45 | 119.23 | 113.81 | 108.06 | 102.58 | 99.42 | 101.68 | 98.79 | 98.24 | 102.33 | 108.88 | 103.29 | 98.56 | 101.87 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 74.77 + 82.74 – 41.54
= 115.97
The cash conversion cycle of Agilent Technologies Inc has shown some fluctuations over the past few years, indicating variations in the efficiency of its working capital management.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and accounts receivable into cash inflows from sales. A shorter cash conversion cycle is generally preferred as it indicates that the company is able to generate cash more quickly from its operations.
Looking at the data provided, we can see that Agilent's cash conversion cycle has ranged from a low of 98.24 days to a high of 119.23 days over the past few years. The company's cash conversion cycle has generally fluctuated within this range, with some periods showing improvements in efficiency and others displaying a longer cycle.
In the most recent period, the cash conversion cycle stood at 115.97 days, indicating that Agilent took approximately 116 days to convert its investments in inventory and accounts receivable into cash inflows from sales. This suggests that the company may have experienced some delays in converting its operating assets into cash during this period.
Overall, Agilent Technologies Inc should continue to monitor and manage its cash conversion cycle effectively to ensure efficient working capital management and optimize cash flow generation from its operations.
Peer comparison
Oct 31, 2024