Coherent Inc (COHR)
Cash conversion cycle
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 100.38 | 98.05 | 97.41 | 91.22 | 86.70 | 108.04 | 119.16 | 142.11 | 117.15 | 119.38 | 111.76 | 103.30 | 98.69 | 97.40 | 102.34 | 96.81 | 105.29 | 123.50 | 146.36 | 221.67 |
| Days of sales outstanding (DSO) | days | 70.02 | 81.13 | 71.99 | 63.18 | 66.68 | 72.54 | 81.73 | 95.32 | 79.83 | 75.48 | 70.18 | 77.57 | 79.06 | 75.62 | 74.51 | 79.08 | 95.35 | 94.08 | 107.23 | 137.62 |
| Number of days of payables | days | 49.28 | 45.05 | 38.01 | 31.99 | 27.62 | 33.24 | 37.38 | 50.58 | 56.45 | 49.07 | 46.39 | 40.77 | 41.77 | 40.13 | 39.06 | 38.74 | 45.66 | 41.02 | 50.56 | 69.64 |
| Cash conversion cycle | days | 121.12 | 134.12 | 131.39 | 122.41 | 125.76 | 147.34 | 163.51 | 186.86 | 140.53 | 145.79 | 135.55 | 140.10 | 135.98 | 132.89 | 137.79 | 137.15 | 154.99 | 176.56 | 203.02 | 289.65 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 100.38 + 70.02 – 49.28
= 121.12
The cash conversion cycle of Coherent Inc has shown variability over the past few quarters, ranging from a low of 121.12 days to a high of 289.65 days. It is a measure of how long it takes for the company to convert its investments in inventory into cash received from customers.
A shorter cash conversion cycle is generally more favorable as it indicates that the company is able to efficiently manage its working capital, inventory, and accounts receivable. On the other hand, a longer cash conversion cycle may indicate inefficiencies in managing these elements of the business, leading to potential liquidity issues.
In the most recent quarter, the cash conversion cycle for Coherent Inc was 121.12 days, indicating an improvement in the company's ability to convert its resources into cash compared to the previous quarters. However, it is important to continue monitoring this metric to ensure sustained efficiency in working capital management and liquidity optimization.
Peer comparison
Jun 30, 2024