Azenta Inc (AZTA)
Cash conversion cycle
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.88 | 51.49 | 36.68 | 16.42 | 49.53 |
| Days of sales outstanding (DSO) | days | 85.63 | 22.28 | 87.33 | 77.40 | 52.35 |
| Number of days of payables | days | 16.16 | 23.27 | 25.72 | 11.36 | 29.34 |
| Cash conversion cycle | days | 127.35 | 50.50 | 98.28 | 82.46 | 72.53 |
September 30, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.88 + 85.63 – 16.16
= 127.35
The cash conversion cycle for Azenta Inc has shown fluctuations over the past five years. In 2023, the cash conversion cycle increased to 169.82 days from 164.67 days in 2022. This indicates that the company took longer to convert its resources into cash during the most recent period. The cycle was notably higher compared to 2021 when it stood at 109.57 days and also higher than the 114.05 days in 2020. However, it remains consistent with the figure of 109.25 days in 2019.
These fluctuations suggest that Azenta Inc's management of its cash conversion cycle has been somewhat inconsistent. It may be important for the company to identify the factors contributing to the increased cycle in order to optimize cash flow and working capital management in the future.
Peer comparison
Sep 30, 2023