Coherent Inc (COHR)
Cash conversion cycle
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 188.47 | 138.52 | 138.68 | 149.08 | 144.40 | 145.92 | 146.93 | 138.03 | 131.12 | 157.00 | 170.51 | 199.56 | 161.36 | 162.05 | 151.90 | 140.16 | 133.04 | 132.73 | 137.77 | 130.85 |
| Days of sales outstanding (DSO) | days | 60.56 | 65.89 | 61.34 | 59,807.88 | 65.79 | 75.86 | 67.49 | 59.66 | 63.77 | 69.68 | 78.83 | 92.09 | 77.07 | 73.63 | 69.06 | 76.38 | 77.44 | 73.76 | 72.16 | 29.05 |
| Number of days of payables | days | 111.04 | 77.38 | 71.16 | 74.17 | 70.89 | 67.05 | 57.34 | 48.40 | 41.77 | 48.30 | 53.49 | 71.02 | 77.76 | 66.61 | 63.05 | 55.32 | 56.31 | 54.69 | 52.58 | 52.36 |
| Cash conversion cycle | days | 137.99 | 127.03 | 128.87 | 59,882.78 | 139.30 | 154.73 | 157.08 | 149.28 | 153.12 | 178.38 | 195.85 | 220.62 | 160.68 | 169.06 | 157.91 | 161.22 | 154.18 | 151.80 | 157.35 | 107.54 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 188.47 + 60.56 – 111.04
= 137.99
The provided data illustrates the evolution of Coherent Inc.'s cash conversion cycle (CCC) over a series of quarters, reflecting significant fluctuations in operational efficiency and liquidity management. The CCC measures the duration in days it takes for a company to convert its investments in inventory and other resources into cash flows from sales, encompassing days sales outstanding (DSO), days inventory outstanding (DIO), and days payable outstanding (DPO).
From the end of September 2020 through September 2023, the CCC exhibits variability, with values typically ranging between approximately 107 days to over 220 days. Notably, the cycle shows an increasing trend culminating around September 2022, reaching a peak of approximately 220.62 days. This suggests a period where the company experienced extended periods to convert inventories and receivables into cash, potentially indicating slower receivable collections, increased inventory holding periods, or delayed payables.
Post-September 2022, the CCC demonstrates a downward trajectory, declining to approximately 138 days by June 2024. This reduction points to improvements in operational efficiency, possibly driven by faster receivables turnover, reduced inventory holding, or extended payables. The most recent figures from September 2024 through June 2025 indicate a stabilization around 128-138 days, suggesting a more efficient working capital cycle compared to the earlier years.
An anomalous data point appears on September 30, 2024, with an extraordinarily high CCC of approximately 59,883 days, likely representing a data error or technical anomaly, and should be disregarded when assessing operational performance.
Overall, the historical trend indicates initial periods of operational strain or strategic changes leading to increased cash conversion duration, followed by a concerted effort to optimize working capital. The recent consistent decline in the CCC reflects efforts to enhance liquidity, reduce cash cycle lengths, and improve cash flow management. These patterns suggest a strategic shift towards more efficient receivable, inventory, and payable management, which is favorable for the company's liquidity position in the near term.
Peer comparison
Jun 30, 2025