The Cooper Companies, Inc. Common Stock (COO)
Activity ratios
Short-term
Turnover ratios
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.78 | 3.97 | 4.89 | 4.50 | 4.05 |
| Receivables turnover | 5.43 | 5.72 | 5.79 | 5.62 | 5.50 |
| Payables turnover | 11.65 | 11.16 | 12.35 | 16.32 | 13.14 |
| Working capital turnover | 4.19 | 4.74 | 12.74 | 3.95 | 8.87 |
The inventory turnover ratio for The Cooper Companies, Inc. Common Stock has shown a slight decrease over the past five years, from 4.05 in 2020 to 3.78 in 2024. This indicates that the company is taking longer to sell its inventory.
On the other hand, the receivables turnover ratio has remained relatively stable, fluctuating between 5.43 and 5.79 over the same period. This suggests that the company is efficient in collecting payments from its customers.
The payables turnover ratio has also shown some variation, with a decrease from 13.14 in 2020 to 11.65 in 2024. This implies that the company is taking longer to pay its suppliers.
The working capital turnover ratio has demonstrated significant fluctuations, ranging from 3.95 in 2021 to 12.74 in 2022. This ratio measures how efficiently the company utilizes its working capital to generate sales. The improvement in this ratio in 2022 indicates a more efficient use of working capital, while the decrease in subsequent years suggests a decline in efficiency.
Overall, these activity ratios provide insights into the efficiency of The Cooper Companies, Inc. Common Stock in managing its inventory, receivables, payables, and working capital turnover over the past five years.
Average number of days
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.55 | 91.87 | 74.70 | 81.17 | 90.02 |
| Days of sales outstanding (DSO) | days | 67.18 | 63.80 | 63.05 | 64.99 | 66.41 |
| Number of days of payables | days | 31.33 | 32.71 | 29.56 | 22.37 | 27.77 |
The analysis of The Cooper Companies, Inc. Common Stock activity ratios reveals certain trends in its operational efficiency over the past five years.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows fluctuations over the years, with the highest level observed in 2024 at 96.55 days.
- The company seems to be maintaining inventory for an extended period, which could imply inefficiencies in managing inventory levels or slower turnover.
- Overall, there might be room for improvement in inventory management to streamline operations and reduce holding costs.
2. Days of Sales Outstanding (DSO):
- DSO has remained relatively stable over the years, with a slight increase in 2024 to 67.18 days.
- This ratio indicates the average number of days it takes for the company to collect its accounts receivable.
- The stability in DSO suggests that the company has been successful in managing its credit and collection policies effectively.
3. Number of Days of Payables:
- The trend in the number of days of payables shows variability, with the highest level in 2023 at 32.71 days.
- A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which can be beneficial in managing cash flow.
- However, the company should strike a balance between delaying payments to suppliers and maintaining good relationships with them.
In summary, The Cooper Companies, Inc. Common Stock's activity ratios suggest opportunities for improving inventory management efficiency while maintaining stability in accounts receivable collection and payables management. Further analysis and a holistic approach to working capital management could help enhance overall operational performance in the future.
Long-term
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.09 | 2.14 | 2.28 | 2.15 | 1.87 |
| Total asset turnover | 0.32 | 0.30 | 0.28 | 0.30 | 0.36 |
The fixed asset turnover ratio for The Cooper Companies, Inc. indicates how effectively the company is generating revenue from its fixed assets. The trend over the past five years has been somewhat inconsistent, with a slight decrease from 2.28 in 2022 to 2.09 in 2024. This ratio suggests that for every dollar invested in fixed assets, the company is generating $2.09 in sales in 2024, down from $2.28 in 2022.
On the other hand, the total asset turnover ratio measures how efficiently the company is using all its assets to generate revenue. The trend for this ratio has been somewhat fluctuating as well, with a low of 0.28 in 2022, a slight increase to 0.30 in 2023 and 2021, before dropping to 0.32 in 2024. This ratio indicates that for every dollar of assets owned by the company, it is generating $0.32 in sales in 2024.
Overall, the fixed asset turnover ratio indicates that the company's efficiency in generating sales from fixed assets has slightly decreased over the years, while the total asset turnover ratio shows a mixed performance in effectively utilizing all assets to generate revenue. This analysis suggests that The Cooper Companies, Inc. may need to evaluate its asset management strategies to improve its long-term activity ratios.