Helen of Troy Ltd (HELE)
Cash conversion cycle
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 81.99 | 88.47 | 103.72 | 95.80 | 60.34 |
| Days of sales outstanding (DSO) | days | 73.78 | 67.79 | 75.47 | 66.92 | 74.96 |
| Number of days of payables | days | 50.80 | 37.02 | 57.29 | 66.60 | 35.94 |
| Cash conversion cycle | days | 104.98 | 119.24 | 121.91 | 96.12 | 99.36 |
February 29, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 81.99 + 73.78 – 50.80
= 104.98
The cash conversion cycle of Helen of Troy Ltd has shown fluctuations over the past five years. In the most recent fiscal year as of February 29, 2024, the company's cash conversion cycle was 104.98 days, showing an improvement from the previous year's 119.24 days. This indicates that the company has been able to manage its cash conversion process more efficiently.
Comparing to the fiscal year ended February 28, 2022, where the cash conversion cycle was at 121.91 days, the current year's performance reflects a notable enhancement in the management of operating cash flows, inventory turnover, and accounts receivable collection.
In the fiscal year ended February 28, 2021, the cash conversion cycle was 96.12 days, which was a lower figure compared to the latest year. While the company saw an increase in the cash conversion cycle in the following year, it managed to maintain efficiency relative to the levels seen in the earlier years.
Looking back to the fiscal year ending February 29, 2020, the cash conversion cycle stood at 99.36 days, which is comparative to the most recent year's performance. Overall, the trend in Helen of Troy Ltd's cash conversion cycle demonstrates fluctuations but showcases the company's ability to effectively manage its cash conversion processes over the years.