Helen of Troy Ltd (HELE)
Cash conversion cycle
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 166.33 | 164.95 | 169.41 | 159.84 | 136.25 | 143.81 | 144.91 | 139.49 | 141.69 | 158.95 | 183.16 | 179.69 | 160.35 | 175.93 | 182.29 | 157.64 | 150.05 | 122.53 | 120.97 | 101.68 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 166.33 | 164.95 | 169.41 | 159.84 | 136.25 | 143.81 | 144.91 | 139.49 | 141.69 | 158.95 | 183.16 | 179.69 | 160.35 | 175.93 | 182.29 | 157.64 | 150.05 | 122.53 | 120.97 | 101.68 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 166.33 + — – —
= 166.33
Helen of Troy Ltd's cash conversion cycle has exhibited fluctuating trends over the specified time period. The cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash from sales, has ranged from as low as 101.68 days to as high as 183.16 days.
The company experienced a significant increase in the cash conversion cycle from November 2022 to August 2023, reaching its peak at 183.16 days. However, there was a gradual decrease in the cycle thereafter, with the lowest point recorded at 136.25 days in February 2024.
Despite some fluctuations, Helen of Troy Ltd has generally maintained its cash conversion cycle within a reasonable range in recent periods. It is essential for the company to continue monitoring and managing its working capital efficiently to ensure optimal cash flow and operational effectiveness.