Haemonetics Corporation (HAE)

Cash conversion cycle

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Days of inventory on hand (DOH)	days	98.50	92.41	114.08	137.80	101.06
Days of sales outstanding (DSO)	days	29.06	28.14	59.00	54.11	62.03
Number of days of payables	days	22.78	22.78	22.72	21.48	18.97
Cash conversion cycle	days	104.78	97.78	150.36	170.43	144.12

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 98.50 + 29.06 – 22.78
= 104.78

The cash conversion cycle of Haemonetics Corporation has fluctuated over the past five years. In fiscal year 2024, the company's cash conversion cycle was 104.78 days, representing the number of days it takes for the company to convert its resources invested in inventory into cash flows from sales. This indicates an improvement compared to the previous year, where the cycle was 97.78 days.

Looking back at fiscal year 2022, Haemonetics had a longer cash conversion cycle of 150.36 days, signifying that it took the company more time to convert its investments in inventory into cash. The cycle decreased slightly in fiscal year 2023 to 170.43 days before declining further in fiscal year 2024.

Despite the fluctuations observed over the years, Haemonetics' cash conversion cycle has shown overall improvement, reflecting a more efficient management of inventory, accounts receivable, and accounts payable. This suggests that the company has been able to optimize its working capital management and streamline its operations to generate cash flows more effectively.