Hologic Inc (HOLX)
Cash conversion cycle
| Sep 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 137.66 | 119.49 | 118.71 | 115.08 | 127.14 | 140.33 | 134.67 | 122.04 | 110.76 | 99.54 | 100.00 | 99.62 | 104.11 | 100.72 | 98.21 | 93.10 | 86.26 | 81.33 | 62.71 | 73.93 |
| Days of sales outstanding (DSO) | days | 54.37 | 59.64 | 61.69 | 56.66 | 62.08 | — | 56.75 | 47.90 | 50.52 | 57.52 | 70.23 | 61.09 | 60.80 | 83.22 | 97.86 | 99.44 | 80.64 | 65.56 | 62.70 | 70.32 |
| Number of days of payables | days | 41.27 | 37.27 | 34.44 | 32.64 | 33.76 | 38.25 | 40.10 | 38.69 | 41.28 | 42.53 | 39.01 | 42.91 | 43.14 | 49.70 | 43.07 | 42.13 | 26.55 | 27.24 | 20.37 | 30.99 |
| Cash conversion cycle | days | 150.76 | 141.86 | 145.96 | 139.09 | 155.46 | 102.09 | 151.32 | 131.26 | 120.01 | 114.53 | 131.22 | 117.80 | 121.76 | 134.24 | 153.00 | 150.41 | 140.35 | 119.66 | 105.03 | 113.26 |
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 fluctuated over the past few quarters. It measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From September 30, 2019 to September 30, 2024, the cash conversion cycle ranged from a low of 102.09 days to a high of 155.46 days. This demonstrates variability in how efficiently the company manages its inventory, receivables, and payables to generate cash.
The trend shows an increase in the cash conversion cycle in the most recent quarters, indicating that Hologic Inc may be taking longer to convert its investments into cash. A high cash conversion cycle can tie up capital and impact liquidity, while a lower cycle indicates faster turnover of resources.
Further analysis is needed to understand the drivers behind these fluctuations and to identify potential areas for improvement in managing working capital to optimize the cash conversion cycle for Hologic Inc.
Peer comparison
Sep 30, 2024