Cohu Inc (COHU)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 233.78 | 170.50 | 144.61 | 117.51 | 142.80 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 233.78 | 170.50 | 144.61 | 117.51 | 142.80 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 233.78 + — – —
= 233.78
The cash conversion cycle of Cohu Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was 142.80 days. This decreased to 117.51 days by December 31, 2021, indicating an improvement in the efficiency of converting resources into cash.
However, by December 31, 2022, the cash conversion cycle increased to 144.61 days, suggesting a potential delay in converting investments into cash. This trend continued into December 31, 2023, where the cycle extended further to 170.50 days, indicating a longer period to convert resources into cash.
The cash conversion cycle peaked at 233.78 days by December 31, 2024, signifying a significant delay in the conversion process. A longer cash conversion cycle may indicate inefficiencies in managing inventory, accounts receivable, and accounts payable, which could negatively impact the company's liquidity and overall financial health.
It is crucial for Cohu Inc to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and sustainable operations. Analyzing the reasons behind the fluctuations in the cycle can help the company identify areas for improvement and implement strategies to enhance efficiency in converting investments into cash.
Peer comparison
Dec 31, 2024