Azenta Inc (AZTA)
Cash conversion cycle
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 47.03 | 47.04 | 50.27 | 60.63 | 59.23 | 69.41 | 78.64 | 79.70 | 52.39 | 98.64 | 69.45 | 51.54 | 38.77 | 61.60 | 54.48 | 55.92 | 17.10 | 55.93 | 52.15 | 52.31 |
| Days of sales outstanding (DSO) | days | 96.81 | 92.36 | 85.93 | 88.13 | 85.28 | 94.00 | 102.42 | 123.89 | 107.80 | 99.87 | 68.81 | 53.04 | 44.77 | 90.06 | 96.30 | 90.23 | 91.26 | 53.65 | 53.22 | 50.98 |
| Number of days of payables | days | 18.13 | 15.96 | 15.33 | 19.18 | 16.54 | 18.56 | 23.64 | 30.18 | 23.67 | 41.99 | 32.04 | 34.44 | 27.19 | 39.09 | 33.09 | 30.60 | 11.83 | 33.43 | 30.97 | 32.48 |
| Cash conversion cycle | days | 125.71 | 123.44 | 120.86 | 129.58 | 127.97 | 144.85 | 157.42 | 173.41 | 136.51 | 156.51 | 106.22 | 70.15 | 56.35 | 112.57 | 117.69 | 115.55 | 96.53 | 76.14 | 74.40 | 70.81 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.03 + 96.81 – 18.13
= 125.71
The cash conversion cycle of Azenta Inc has shown some fluctuation over the past several quarters. In the most recent quarter, ending September 30, 2024, the cash conversion cycle was 125.71 days, indicating that it took the company approximately 125.71 days to convert its investments in inventory into cash from sales.
Comparing this to the previous quarter, the cash conversion cycle improved slightly from 123.44 days to 125.71 days. This suggests that Azenta Inc was able to manage its working capital more efficiently in the latest quarter.
Looking further back, the trend in the cash conversion cycle demonstrates periods of variability. For example, in December 2021, the cash conversion cycle was at its lowest point of 56.35 days, indicating that the company was operating more efficiently in managing its working capital and turning inventory into cash during that period.
On the other hand, the highest cash conversion cycle was observed in December 2022 at 173.41 days. This longer cycle could imply that Azenta Inc faced challenges in converting its investments in inventory to cash within a reasonable timeframe.
Overall, monitoring the cash conversion cycle is crucial for evaluating how quickly a company can convert its investments in inventory into cash, and the fluctuations in Azenta Inc's cycle over time suggest varying levels of efficiency in managing its working capital and operational processes. Analysis of these trends can provide insights into the company's financial health and operational efficiency.
Peer comparison
Sep 30, 2024