Haemonetics Corporation (HAE)

Cash conversion cycle

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 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Days of inventory on hand (DOH) days 101.49 101.76 99.13 103.25 95.08 95.81 99.00 112.47 117.12 122.95 132.75 139.01 145.18 134.86 131.26 120.60 102.39 96.10 94.09 86.01
Days of sales outstanding (DSO) days 29.04 31.85 26.57 27.24 28.14 59.33 58.91 54.00 60.76 57.31 54.53 60.92 62.28 65.15 60.96
Number of days of payables days 23.47 19.03 27.80 27.89 23.44 23.89 23.90 23.44 23.33 20.58 18.50 20.92 22.63 19.34 21.10 19.84 19.22 19.77 22.11 23.56
Cash conversion cycle days 107.06 114.59 97.90 102.59 99.79 131.25 75.10 89.04 152.70 102.37 114.25 118.09 176.55 176.27 167.47 155.29 144.09 138.61 137.13 123.41

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 101.49 + 29.04 – 23.47
= 107.06

The cash conversion cycle of Haemonetics Corporation has shown fluctuations in recent periods. The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales.

The trend in the cash conversion cycle of Haemonetics Corporation indicates that the company has experienced variability in its liquidity management efficiency over the periods analyzed. A shorter cash conversion cycle is generally preferred as it signifies faster turnover of inventory and quicker conversion of sales into cash.

In the latest period, as of March 31, 2024, the cash conversion cycle stands at 107.06 days, showing some improvement compared to the previous quarter. However, it is important to note that this figure is still higher than some earlier periods, indicating that Haemonetics may be facing challenges in managing its working capital effectively.

Overall, Haemonetics Corporation should continue to monitor and potentially streamline its cash conversion cycle to enhance its liquidity position and optimize its use of resources. A consistent focus on improving inventory management, accounts receivable collection, and accounts payable strategies can help the company shorten its cash conversion cycle and strengthen its financial performance in the long run.


Peer comparison

Mar 31, 2024