Azenta Inc (AZTA)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 45.78 | 57.88 | 51.49 | 36.68 | 16.42 |
| Days of sales outstanding (DSO) | days | 96.97 | 85.63 | 22.28 | 87.33 | 77.40 |
| Number of days of payables | days | 17.65 | 16.16 | 23.27 | 25.72 | 11.36 |
| Cash conversion cycle | days | 125.11 | 127.35 | 50.50 | 98.28 | 82.46 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.78 + 96.97 – 17.65
= 125.11
The cash conversion cycle for Azenta Inc has fluctuated over the past five years. In 2024, the company's cash conversion cycle was 125.11 days, indicating that it takes approximately 125 days to convert its investments in inventory into cash flows from sales. This represents a slight improvement from the previous year, where the cash conversion cycle was 127.35 days.
In contrast, in 2022, Azenta Inc achieved a significantly lower cash conversion cycle of 50.50 days, suggesting a more efficient management of cash flows. However, this improvement was not sustained, as evidenced by the higher cash conversion cycle figures in 2023 and 2024.
Compared to 2021 and 2020, where the cash conversion cycle figures were 98.28 days and 82.46 days, respectively, Azenta Inc experienced longer cash conversion cycles in the most recent years. This trend may indicate potential challenges in managing working capital efficiency or a change in the company's operating environment.
Overall, Azenta Inc should continue to monitor and analyze its cash conversion cycle to identify opportunities for optimizing working capital management and enhancing operational efficiency.
Peer comparison
Sep 30, 2024