Keysight Technologies Inc (KEYS)

Cash conversion cycle

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Days of inventory on hand (DOH)	days	107.50	110.86	110.57	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
Days of sales outstanding (DSO)	days	75.65	58.51	57.14	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
Number of days of payables	days	32.92	30.25	29.05	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
Cash conversion cycle	days	150.23	139.12	138.66	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

October 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 107.50 + 75.65 – 32.92
= 150.23

The cash conversion cycle of Keysight Technologies Inc has shown fluctuations over the reported periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash from sales.

From January 2020 to January 2022, the company's cash conversion cycle increased gradually from 111.44 days to 109.36 days, indicating a slower conversion of its investments into cash. However, there was a significant decrease in the cycle from January 2022 to January 2023, reaching 122.51 days. This suggests an improvement in the company's efficiency in managing its working capital during this period.

Subsequently, there was a noticeable downward trend in the cash conversion cycle from January 2023 to October 2024, with fluctuations along the way. The cycle decreased from 122.51 days to 139.12 days, indicating that the company was able to convert its investments into cash more efficiently during this period.

Overall, the analysis of Keysight Technologies Inc's cash conversion cycle reveals fluctuations over the reported periods, with periods of improvement and some periods showing slower conversion of investments into cash. This indicates varying efficiency in managing the company's working capital and highlights the importance of closely monitoring and optimizing the cash conversion cycle to improve overall financial performance.