Keysight Technologies Inc (KEYS)

Cash conversion cycle

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Days of inventory on hand (DOH)	days	111.80	107.61	103.81	100.56	96.53	92.74	93.28	91.73	91.11	87.13	85.56	87.85	90.62	92.38	95.64	91.22	85.70	81.87	51.20	52.15
Days of sales outstanding (DSO)	days	55.21	65.67	58.25	56.42	60.49	64.25	61.08	57.01	51.57	56.51	50.77	53.27	55.44	56.99	50.40	42.18	55.68	60.06	54.08	58.93
Number of days of payables	days	30.68	31.25	30.77	32.03	34.51	37.61	36.56	35.45	33.32	32.18	27.67	28.15	27.19	27.34	23.73	21.96	26.05	29.38	18.17	18.65
Cash conversion cycle	days	136.33	142.03	131.29	124.94	122.51	119.37	117.80	113.30	109.36	111.46	108.66	112.97	118.87	122.03	122.31	111.44	115.33	112.55	87.11	92.43

January 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 111.80 + 55.21 – 30.68
= 136.33

The cash conversion cycle of Keysight Technologies Inc has been fluctuating over the past eight quarters, ranging from a high of 199.46 days in Q1 2024 to a low of 154.91 days in Q2 2022. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales.

The company's cash conversion cycle has shown an overall increasing trend from Q2 2022 to Q1 2024, indicating that the company may be taking longer to convert its investments into cash. This could be a concern as a longer cash conversion cycle can tie up cash resources and impact liquidity.

However, there was a slight improvement in Q4 2023 compared to Q1 2024, suggesting that the company may have managed to optimize its working capital during that period. It is important for the company to continue monitoring and managing its cash conversion cycle efficiently to ensure a healthy cash flow position and sustainable operations.