Cohu Inc (COHU)
Cash conversion cycle
| 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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 206.41 | 188.92 | 179.01 | 173.50 | 165.36 | 169.18 | 163.33 | 151.55 | 141.85 | 134.84 | 126.86 | 121.04 | 117.51 | 114.09 | 123.21 | 145.10 | 142.80 | 147.56 | 152.93 | 143.53 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 206.41 | 188.92 | 179.01 | 173.50 | 165.36 | 169.18 | 163.33 | 151.55 | 141.85 | 134.84 | 126.86 | 121.04 | 117.51 | 114.09 | 123.21 | 145.10 | 142.80 | 147.56 | 152.93 | 143.53 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 206.41 + — – —
= 206.41
The cash conversion cycle is a key measure of a company's efficiency in managing its working capital. It reflects the time taken for a company to convert its investment in inventory into cash received from sales.
Analyzing the data provided for Cohu Inc, we see fluctuations in the cash conversion cycle over the periods from March 31, 2020, to December 31, 2024. The cash conversion cycle ranges from a low of 114.09 days on September 30, 2021, to a high of 206.41 days on December 31, 2024.
A shorter cash conversion cycle is generally more favorable as it indicates that the company is able to quickly turn its inventory into cash. Conversely, a longer cash conversion cycle suggests inefficiencies in managing working capital and cash flows.
For Cohu Inc, the trend in the cash conversion cycle shows some variability over the periods, with fluctuations in cycle lengths. It is essential for the company to monitor and manage its working capital effectively to ensure a balance between maintaining optimal inventory levels and receiving timely payments from customers.
Further analysis and comparison with industry benchmarks would provide more insights into Cohu Inc's performance in managing its cash conversion cycle and working capital efficiency.
Peer comparison
Dec 31, 2024