Haemonetics Corporation (HAE)

Cash conversion cycle

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Days of inventory on hand (DOH)	days	217.82	203.18	214.77	213.51	186.20	185.48	177.88	182.49	171.03	174.79	182.74	208.51	219.31	222.20	235.01	244.45	249.15	240.78	239.51	220.75
Days of sales outstanding (DSO)	days	54.36	56.32	57.26	55.13	57.60	60.81	51.32	53.05	55.95	58.54	57.77	52.10	58.57	59.34	55.23	53.70	53.49	60.68	57.24	54.46
Number of days of payables	days	—	35.59	38.92	43.94	43.06	34.68	49.89	49.30	42.15	43.58	44.12	43.45	43.69	37.19	32.75	36.78	38.84	34.53	38.51	36.32
Cash conversion cycle	days	272.18	223.92	233.11	224.70	200.73	211.61	179.32	186.24	184.82	189.74	196.39	217.16	234.19	244.35	257.49	261.36	263.79	266.92	258.24	238.89

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 217.82 + 54.36 – —
= 272.18

The cash conversion cycle of Haemonetics Corporation has shown fluctuations over the analyzed period. The cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash from sales, has ranged from as low as 179.32 days to as high as 272.18 days.

Analyzing the trend, we can see that the cash conversion cycle initially decreased from 238.89 days on June 30, 2020, to a low of 179.32 days on September 30, 2023, indicating an improvement in the efficiency of the company's working capital management. However, the cycle started to increase again and reached 272.18 days on March 31, 2025.

It is important to note that a shorter cash conversion cycle generally indicates that the company is managing its working capital more efficiently, while a longer cycle may suggest inefficiencies in inventory management, accounts payable, or accounts receivable processes.

Overall, Haemonetics Corporation should closely monitor its cash conversion cycle to ensure optimal utilization of its resources and continued financial stability. A sustained downward trend in the cycle would be a positive sign for the company's financial health and operational efficiency.