The Cooper Companies Inc. (COO)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 133.48 | 122.96 | 151.12 | 141.10 | 141.97 | 132.09 | 111.92 | 115.82 | 122.52 | 123.79 | 131.05 | 134.46 | 136.95 | 128.44 | 144.21 | 133.13 | 135.60 | 148.93 | 169.53 | 205.66 |
January 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.42 + 66.80 – 24.74
= 133.48
The cash conversion cycle of Cooper Companies, Inc. has shown some fluctuations over the past eight quarters. The average cash conversion cycle over this period is approximately 202.14 days.
In Q1 2024, the cash conversion cycle increased to 224.89 days, indicating that it took longer for the company to convert its investments in inventory and other resources into cash during this period. This suggests potential challenges in managing inventory levels, collection of receivables, and payment of payables.
Comparatively, in Q4 2023, the cash conversion cycle decreased to 201.90 days, showing an improvement in the efficiency of the company's working capital management. This could be attributed to better inventory control, collection of receivables, and payment of payables during that quarter.
Looking further back, in Q3 and Q2 of 2023, the cash conversion cycle was 213.35 days and 199.35 days, respectively, indicating fluctuations in the company's cash flow conversion efficiency. Q1 2023 saw a cash conversion cycle of 195.15 days, the lowest in the past eight quarters, suggesting a more efficient cash flow management during that period.
In comparison, Q4 and Q3 of 2022 had cash conversion cycles of 180.18 days and 190.78 days, respectively, showing relatively efficient working capital management during those quarters. Q2 2022 had a cash conversion cycle of 204.94 days, indicating a temporary inefficiency in cash flow conversion.
Overall, the trend in the cash conversion cycle of Cooper Companies, Inc. shows some variability, highlighting the importance of closely monitoring working capital efficiency to ensure optimal cash flow management.
Peer comparison
Jan 31, 2024