The Cooper Companies Inc. (COO)

Liquidity 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
Current ratio 1.86 1.76 1.72 1.69 1.72 1.20 1.16 1.05 1.02 2.00 1.39 1.33 1.35 1.27 1.17 1.14 1.08 1.05 1.29 1.21
Quick ratio 0.81 0.75 0.75 0.71 0.76 0.54 0.57 0.56 0.48 0.83 0.61 0.60 0.60 0.55 0.51 0.44 0.45 0.47 0.58 0.53
Cash ratio 0.14 0.12 0.12 0.12 0.13 0.11 0.18 0.24 0.17 0.13 0.11 0.11 0.12 0.12 0.11 0.08 0.07 0.08 0.13 0.11

Cooper Companies, Inc.'s liquidity ratios demonstrate a favorable trend over the past quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has been consistently increasing from 1.05 in Q2 2022 to 1.86 in Q1 2024. This indicates that the company has a comfortable level of current assets to meet its current liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows an improving trend, rising from 0.69 in Q2 2022 to 1.08 in Q1 2024. This suggests that Cooper Companies has a strong ability to meet its short-term obligations without relying on selling inventory.

Furthermore, the cash ratio, which provides an even more conservative measure of liquidity by focusing solely on cash and cash equivalents, has also improved steadily over the quarters, from 0.27 in Q2 2022 to 0.41 in Q1 2024. This indicates that the company has a healthy level of cash reserves to cover its immediate liabilities.

Overall, based on the improving trend in the current ratio, quick ratio, and cash ratio, Cooper Companies, Inc. appears to have a solid liquidity position, with sufficient current assets and cash reserves to meet its short-term financial obligations.


Additional liquidity measure

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
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

The cash conversion cycle of Cooper Companies, Inc. has shown fluctuations over the past eight quarters. In Q1 2024, the company's cash conversion cycle increased to 224.89 days, indicating a longer period to convert its investments in inventory and other resources into cash.

This follows a trend of increasing cash conversion cycles that started from Q3 2022 and peaked in Q1 2024. This suggests potential challenges in effectively managing working capital and converting sales into cash efficiently during this period.

In contrast, the company experienced a comparatively shorter cash conversion cycle in Q4 2022 at 180.18 days, which was the lowest point in the past eight quarters. This could indicate a period of improved efficiency in managing inventory, receivables, and payables.

The overall trend indicates that Cooper Companies, Inc. has faced challenges in optimizing its cash conversion cycle, with fluctuations in efficiency over the observed period. Further analysis and comparison with industry benchmarks may provide additional insights into the company's working capital management strategy and performance.