Hologic Inc (HOLX)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 137.66 | 115.08 | 122.04 | 99.61 | 93.11 |
| Days of sales outstanding (DSO) | days | 54.37 | 56.66 | 47.90 | 61.09 | 99.45 |
| Number of days of payables | days | 41.27 | 32.64 | 38.68 | 42.91 | 42.13 |
| Cash conversion cycle | days | 150.76 | 139.09 | 131.25 | 117.79 | 150.42 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 137.66 + 54.37 – 41.27
= 150.76
The cash conversion cycle for Hologic Inc has shown fluctuation over the past five years. In the fiscal year ending September 30, 2024, the company's cash conversion cycle was 150.76 days, indicating an increase from the prior year. This suggests that the company took longer to convert its investments in inventory and accounts receivable into cash during this period.
In the fiscal year ending September 30, 2023, the cash conversion cycle was 139.09 days, representing a slight increase from the previous year. However, in the fiscal year ending September 30, 2022, the company managed to decrease its cash conversion cycle to 131.25 days, indicating an improvement in efficiency in managing its working capital.
The most significant improvement in recent years occurred in the fiscal year ending September 30, 2021, where the cash conversion cycle decreased to 117.79 days. This indicates that the company was able to more efficiently manage its cash flow and working capital during that period.
However, in the fiscal year ending September 30, 2020, the cash conversion cycle increased to 150.42 days, returning to a higher level compared to the previous year. This could suggest potential challenges in managing liquidity and efficiently converting investments into cash during that period.
Overall, Hologic Inc's cash conversion cycle has shown variability in recent years, with fluctuations in efficiency in managing its working capital and cash flow. It is important for the company to continuously monitor and improve its cash conversion cycle to ensure optimal liquidity and financial performance.
Peer comparison
Sep 30, 2024