The Cooper Companies Inc. (COO)

Activity ratios

Short-term

Turnover ratios

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Inventory turnover 3.99 3.97 3.01 3.02 3.12 3.19 4.69 4.76 4.66 4.50 4.36 4.14 4.08 4.05 3.35 3.56 3.37 2.90 2.33 1.80
Receivables turnover 5.46 5.72 5.38 5.87 5.64 5.79 5.84 5.84 5.71 5.62 5.28 5.39 5.29 5.51 5.35 6.78 6.48 6.06 6.42 6.55
Payables turnover 14.75 11.16 9.60 8.71 9.17 8.07 12.82 15.61 18.37 16.31 16.75 17.01 16.93 13.14 11.05 15.72 12.51 9.78 8.26 6.86
Working capital turnover 4.29 4.74 4.73 5.10 4.96 12.74 14.30 34.59 89.03 3.95 6.87 8.01 7.26 8.90 12.52 17.75 32.47 49.94 9.93 13.25

Cooper Companies, Inc. has been able to effectively manage its inventory turnover, with a decreasing trend from Q1 2023 to Q1 2024. This indicates that the company is efficiently using its inventory to generate sales.

In terms of receivables turnover, Cooper Companies, Inc. has shown consistency with slight fluctuations over the quarters. This ratio shows how effectively the company is collecting payments from its customers within a specific period.

On the other hand, the payables turnover ratio has shown variability over the quarters, indicating changes in the company's payment practices with its suppliers.

The working capital turnover ratio for Cooper Companies, Inc. has fluctuated significantly over the quarters, with a noticeable decrease in Q2 and Q3 2022, followed by an increase in the last two quarters of 2023. This ratio demonstrates how efficiently the company is utilizing its working capital to generate sales.

Overall, Cooper Companies, Inc. seems to be managing its activity ratios effectively, with room for improvement in certain areas such as payables turnover to optimize its cash flow management.

Average number of days

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Days of inventory on hand (DOH) days 91.42 91.87 121.31 120.77 117.04 114.26 77.88 76.69 78.41 81.17 83.75 88.20 89.54 90.02 109.03 102.53 108.45 125.97 156.84 203.14
Days of sales outstanding (DSO) days 66.80 63.80 67.81 62.21 64.72 63.05 62.50 62.52 63.98 64.99 69.09 67.72 68.98 66.20 68.21 53.82 56.34 60.26 56.89 55.75
Number of days of payables days 24.74 32.71 38.01 41.88 39.79 45.22 28.47 23.38 19.87 22.37 21.80 21.46 21.56 27.77 33.03 23.22 29.19 37.30 44.20 53.23

The activity ratios of Cooper Companies, Inc. provide insights into the efficiency of the company's inventory management, accounts receivable collection, and accounts payable payment processes.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a slight increase from Q2 2022 to Q1 2024, indicating that Cooper Companies, Inc. is holding inventory for a longer period.
- This may suggest potential issues with inventory management efficiency or the need to monitor inventory levels more closely to avoid excess inventory accumulation.

2. Days of Sales Outstanding (DSO):
- The DSO fluctuates across the quarters but generally remains within a relatively stable range.
- A lower DSO indicates that Cooper Companies, Inc. is collecting its accounts receivable faster, which is positive as it implies efficient credit management and timely collection of sales revenues.

3. Number of Days of Payables:
- The days of payables show variability over the quarters, with a considerable increase in Q4 2022 and a subsequent decline in Q1 2023.
- A longer number of days of payables suggests that the company is taking longer to pay its suppliers, which may indicate cash flow challenges or potential difficulties in managing supplier relationships.

Overall, monitoring these activity ratios will be crucial for Cooper Companies, Inc. to ensure optimal working capital management and operational efficiency. The company may need to focus on improving inventory turnover, optimizing accounts receivable collection processes, and maintaining a balanced approach to managing accounts payable to enhance overall financial performance and liquidity.

Long-term

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Fixed asset turnover 2.11 2.14 2.21 2.22 2.24 2.28 2.33 2.27 2.20 2.15 2.15 2.02 1.87 1.87 1.95 2.09 2.26 2.33 2.44 2.51
Total asset turnover 0.30 0.30 0.29 0.29 0.28 0.28 0.27 0.26 0.26 0.30 0.29 0.29 0.27 0.36 0.36 0.38 0.40 0.42 0.42 0.42

The long-term activity ratios of Cooper Companies, Inc. provide insights into how efficiently the company is utilizing its long-term assets to generate sales. The fixed asset turnover ratio has been relatively stable over the past few quarters, ranging from 2.18 to 2.37. This indicates that for every dollar of fixed assets, the company is generating between $2.18 and $2.37 in sales.

The consistency in the fixed asset turnover ratio suggests that Cooper Companies, Inc. has been effectively utilizing its fixed assets to support its revenue-generating activities. A higher fixed asset turnover ratio is generally preferable as it indicates better efficiency in asset utilization.

In contrast, the total asset turnover ratio has been fluctuating slightly between 0.27 and 0.31 over the same period. This ratio reflects the company's overall efficiency in using all its assets to generate sales. A total asset turnover below 1 typically indicates that the company is not efficiently utilizing its total assets to generate revenue.

While the total asset turnover ratio for Cooper Companies, Inc. has been below 1, the stability and slight increase in recent quarters suggest that the company may be improving its overall asset utilization efficiency. However, management should continue to monitor and strive to improve both fixed asset turnover and total asset turnover ratios to ensure optimal utilization of company resources and sustained profitability.