Haemonetics Corporation (HAE)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	217.82	187.49	171.03	219.31	249.15
Days of sales outstanding (DSO)	days	54.36	57.59	55.95	58.57	53.49
Number of days of payables	days	39.97	43.36	42.15	43.69	38.84
Cash conversion cycle	days	232.21	201.73	184.82	234.19	263.79

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 217.82 + 54.36 – 39.97
= 232.21

Haemonetics Corporation's cash conversion cycle has shown a improving trend over the years. On March 31, 2021, the company had a cash conversion cycle of 263.79 days, which decreased to 234.19 days by March 31, 2022. Subsequently, the cycle further improved to 184.82 days on March 31, 2023, indicating a more efficient management of cash flows and working capital.

By March 31, 2024, the cash conversion cycle slightly increased to 201.73 days, which may be attributed to various factors impacting the company's operations or industry dynamics. Notably, by March 31, 2025, the cash conversion cycle reached 0.00 days, which could signify an exceptional efficiency in converting resources into cash.

Overall, the decreasing trend in the cash conversion cycle over the years reflects Haemonetics Corporation's efforts to streamline its operational processes and optimize working capital management.