Harmonic Inc (HLIT)
Cash conversion cycle
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 73.21 | 86.99 | 107.97 | 110.20 | 102.70 | 131.13 | 138.02 | 157.84 | 142.83 | 117.23 | 103.53 | 110.92 | 105.03 | 82.47 | 72.95 | 65.32 | 69.55 | 72.86 | 65.61 | 69.41 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 73.21 | 86.99 | 107.97 | 110.20 | 102.70 | 131.13 | 138.02 | 157.84 | 142.83 | 117.23 | 103.53 | 110.92 | 105.03 | 82.47 | 72.95 | 65.32 | 69.55 | 72.86 | 65.61 | 69.41 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 73.21 + — – —
= 73.21
The cash conversion cycle for Harmonic Inc shows fluctuations over the periods provided in the data. In general, the cash conversion cycle represents the time between when the company pays for its inventory and when it receives cash from the sale of the products manufactured using that inventory.
From March 31, 2020, to June 30, 2022, the cash conversion cycle varied between 65.32 days to 117.23 days, indicating changes in the efficiency of the company's working capital management. Notably, there was an increasing trend in the cash conversion cycle from September 30, 2021, to December 31, 2024, where it rose from 82.47 days to 73.21 days before declining to 86.99 days on September 30, 2024. This may suggest potential issues in inventory management or slower collection of receivables during this period.
The highest cash conversion cycle was recorded on December 31, 2023, at 157.84 days, indicating a prolonged period between the outflow and inflow of cash. This could potentially signify liquidity challenges or inefficiencies in managing the company's working capital during that specific quarter.
Overall, monitoring the cash conversion cycle is crucial for Harmonic Inc to assess its efficiency in managing cash flows, inventory, and receivables effectively. Fluctuations in the cash conversion cycle must be carefully analyzed to identify operational improvements that can enhance the company's overall financial performance and liquidity position.
Peer comparison
Dec 31, 2024