The Cooper Companies, Inc. Common Stock (COO)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 132.40 | 122.96 | 108.19 | 123.79 | 128.65 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.55 + 67.18 – 31.33
= 132.40
The cash conversion cycle of The Cooper Companies, Inc. Common Stock has shown some fluctuations over the past five years. In the latest fiscal year ending on October 31, 2024, the cash conversion cycle was 132.40 days, which represents an increase compared to the prior year. This increase indicates that the company took longer to convert its investment in inventory and receivables back into cash during the most recent period.
Looking at the historical trend, the cash conversion cycle was relatively stable in the fiscal years ending on October 31, 2022 and 2023, with values of 108.19 days and 122.96 days, respectively. However, in the fiscal years ending on October 31, 2020 and 2021, the cash conversion cycle was higher, at 128.65 days and 123.79 days, suggesting fluctuations in the company's working capital management efficiency during those periods.
Analyzing the cash conversion cycle can provide insights into how efficiently a company manages its operating cycle, including inventory, receivables, and payables. A shorter cash conversion cycle generally indicates that a company is more efficient in generating cash from its operations. Conversely, a longer cash conversion cycle may indicate inefficiencies in managing working capital, potentially leading to increased financing costs or liquidity risks.
Overall, The Cooper Companies, Inc. Common Stock's cash conversion cycle has varied over the past five years, reflecting changes in the company's working capital management practices. Further analysis of the underlying factors contributing to these fluctuations could provide more insights into the company's operational efficiency and financial performance.
Peer comparison
Oct 31, 2024