Azenta Inc (AZTA)
Cash conversion cycle
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 51.51 | 51.95 | 56.82 |
| Days of sales outstanding (DSO) | days | 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 | 52.36 | 105.84 | 105.83 |
| Number of days of payables | days | 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 | 30.52 | 23.69 | 29.81 |
| Cash conversion cycle | days | 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 | 73.35 | 134.10 | 132.84 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.63 + 88.13 – 19.18
= 129.58
The cash conversion cycle measures the time it takes for a company to convert its resources invested in inventory and accounts receivable into cash flow from sales. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital.
Azenta Inc's cash conversion cycle has fluctuated over the past eight quarters, ranging from a low of 164.67 days in Q4 2022 to a high of 1,401.59 days in Q3 2022. Generally, the company experienced longer cash conversion cycles in the earlier quarters of 2023, with figures exceeding 200 days. However, there was a significant improvement in Q4 2023 and Q1 2024 with figures around 170 days, indicating a more efficient conversion of resources into cash.
It is important for Azenta Inc to closely monitor and manage its cash conversion cycle to ensure optimal use of resources and maintain healthy liquidity levels. The recent improvements suggest that the company may have adopted more effective inventory and accounts receivable management strategies. Further analysis and comparison with industry benchmarks can provide additional insights into Azenta Inc's efficiency in converting resources into cash.
Peer comparison
Dec 31, 2023