Keysight Technologies Inc (KEYS)

Cash conversion cycle

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Days of inventory on hand (DOH)	days	107.61	92.90	87.13	92.38	81.87
Days of sales outstanding (DSO)	days	65.67	64.25	56.51	56.99	60.06
Number of days of payables	days	31.25	37.68	32.18	27.34	29.38
Cash conversion cycle	days	142.03	119.47	111.46	122.03	112.55

October 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 107.61 + 65.67 – 31.25
= 142.03

The cash conversion cycle of Keysight Technologies Inc has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle increased to 192.18 days from 155.44 days in 2022. This indicates that the company took longer to convert its investments in inventory and other resources into cash during the most recent fiscal year. It's worth noting that in 2021, the cash conversion cycle was 149.84 days, showing an improvement from the previous year. However, in 2020 and 2019, the cycle was relatively consistent at 167.65 days and 149.92 days, respectively.

The increasing trend in the cash conversion cycle suggests that Keysight Technologies Inc may be facing challenges in efficiently managing its working capital, including inventory and accounts receivable, which could potentially impact the company's liquidity and overall financial performance. Further analysis would be needed to understand the specific factors driving these changes and to assess their potential impact on the company's operations and profitability.