Agilent Technologies Inc (A)
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 | 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 | 62.05 | 69.64 | 79.04 |
| Days of sales outstanding (DSO) | days | 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 | 71.81 | 63.40 | 61.52 |
| Number of days of payables | days | 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 | 32.35 | 33.34 | 37.78 |
| Cash conversion cycle | days | 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 | 101.51 | 99.70 | 102.79 |
January 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.54 + 70.55 – 32.85
= 107.24
The cash conversion cycle of Agilent Technologies Inc. has shown some fluctuations over the past eight quarters. In Q1 2024, the company's cash conversion cycle was 129.92 days, which was lower compared to the prior quarter Q4 2023 at 135.39 days. This indicates that Agilent was able to manage its cash conversion more efficiently in Q1 2024.
However, looking at the bigger picture, the cash conversion cycle has been hovering around a range of 120 to 145 days over the past two years. This suggests that the company's efficiency in converting its investments in inventory and accounts receivable into cash may have been relatively stable, with periodic improvements and deteriorations.
Agilent should continue to monitor and analyze its cash conversion cycle to ensure optimal management of working capital and liquidity. By identifying factors affecting the cycle, the company can make informed decisions to enhance operational efficiency and cash flow management.
Peer comparison
Jan 31, 2024