Cohu Inc (COHU)
Cash conversion cycle
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 125.30 | 121.45 | 121.58 | 118.90 | 104.42 | 104.09 | 98.06 | 91.75 | 88.44 | 88.43 | 92.05 | 106.27 | 100.77 | 102.08 | 108.15 | 99.05 | 94.91 | 88.07 | 101.13 | 111.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 27.02 | 26.91 | 31.96 | 36.84 | 31.77 | 43.85 | 48.80 | 48.99 | 46.80 | 48.60 | 60.31 | 64.55 | 48.03 | 36.55 | 45.77 | 39.26 | 35.36 | 31.65 | 40.13 | 40.02 |
| Cash conversion cycle | days | 98.28 | 94.54 | 89.62 | 82.06 | 72.65 | 60.24 | 49.26 | 42.76 | 41.64 | 39.82 | 31.74 | 41.72 | 52.74 | 65.53 | 62.39 | 59.79 | 59.55 | 56.42 | 61.00 | 71.30 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 125.30 + — – 27.02
= 98.28
The cash conversion cycle for Cohu Inc has shown varying trends over the past few quarters. The trend has been somewhat erratic, with fluctuations in the duration of the cycle. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Looking at the most recent data, as of December 31, 2023, the cash conversion cycle was 98.28 days. This represents the time taken from the initial investment in inventory to the final receipt of cash from sales. The cycle has increased from the previous quarter, indicating a longer period between purchasing inventory and receiving payment for products sold.
Over the past few quarters, the cash conversion cycle has generally been increasing, with occasional declines. However, there was a notable decrease in the cycle duration from September 2022 to March 2022, indicating improvements in efficiency in managing inventory and collecting payments.
The trend of the cash conversion cycle is an important metric to monitor as it reflects the effectiveness of Cohu Inc in managing its working capital and operating efficiency. A shorter cash conversion cycle indicates better liquidity management and quicker turnover of assets, which could potentially lead to improved cash flows and profitability. On the other hand, a longer cycle may suggest inefficiencies in inventory management or delays in collecting receivables, which could impact the company's financial performance.
Peer comparison
Dec 31, 2023