Coherent Inc (COHR)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9,421.59 | 144.40 | 131.12 | 131.11 | 160.61 |
| Days of sales outstanding (DSO) | days | 60.57 | 65.79 | 65.77 | 63.77 | 77.07 |
| Number of days of payables | days | 82.07 | 70.89 | 41.77 | 41.77 | 77.39 |
| Cash conversion cycle | days | 9,400.09 | 139.30 | 155.12 | 153.12 | 160.29 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 9,421.59 + 60.57 – 82.07
= 9,400.09
The cash conversion cycle (CCC) for Coherent Inc. has exhibited notable fluctuations over the period under review. As of September 30, 2022, the CCC stood at approximately 160.29 days. This metric experienced a decline by June 30, 2023, reaching approximately 153.12 days, indicating a modest improvement in the company's ability to convert its investments in inventory and receivables into cash more efficiently. The subsequent period saw a slight increase to 155.12 days as of September 30, 2023, suggesting a brief deterioration in cash flow management or operational efficiencies.
A more significant reduction occurred by June 30, 2024, when the CCC decreased once again to approximately 139.30 days, reflecting further improvements in either inventory turnover, receivables collection, or both. However, the most recent data point, as of June 30, 2025, indicates an extraordinary and likely erroneous increase to approximately 9,400.09 days. This figure deviates substantially from the prior trends and is most likely the result of data entry error, a data anomaly, or a misinterpretation, as such a duration is not sustainable or typical within manufacturing or technology sector operations.
Overall, the data suggests that Coherent Inc. has been generally moving towards improved cash flow efficiency over the period, with gradual reductions in the CCC, until the anomalous figure in mid-2025. Absent the outlier, the trend indicates ongoing efforts to optimize inventory management, receivables, and payable periods, thereby reducing the time between cash outlays and cash inflows.
Peer comparison
Jun 30, 2025