Korn Ferry (KFY)
Activity ratios
Short-term
Turnover ratios
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 5.42 | 3.14 | 2.67 |
| Receivables turnover | 4.57 | 4.81 | 5.03 | 4.48 | 4.06 |
| Payables turnover | 34.70 | 43.44 | 5.00 | 2.57 | 1.82 |
| Working capital turnover | 3.48 | 3.78 | 4.32 | 3.41 | 2.47 |
The analysis of Korn Ferry’s activity ratios over the period from April 30, 2021, to April 30, 2023, reveals several notable trends and insights into the company’s operational efficiency.
Inventory Turnover:
The inventory turnover ratio exhibited a steady increase from 2.67 in 2021 to 3.14 in 2022, indicating an improvement in inventory management and a more efficient conversion of inventory into sales. This upward trend continued significantly into 2023, reaching 5.42, which suggests a substantial enhancement in inventory utilization, potentially reflecting a more effective sales process or a shift toward a leaner inventory position.
Receivables Turnover:
Receivables turnover grew from 4.06 in 2021 to 4.48 in 2022, and further to 5.03 in 2023. This pattern signals an improvement in the collection process and a shorter average collection period, implying that the company is becoming more efficient in converting accounts receivable into cash. While the ratio slightly decreased to 4.81 in 2024 and further to 4.57 in 2025, the overall trend remains indicative of relatively effective receivables management.
Payables Turnover:
The payables turnover ratio increased from 1.82 in 2021 to 2.57 in 2022, and then dramatically to 5.00 in 2023. This sharp rise suggests that the company is settling its payables more quickly over time, possibly reflecting stronger liquidity or a shift in payment policies. However, in 2024, the ratio jumps significantly to 43.44, and then decreases to 34.70 in 2025. These unusually high figures could imply changes in accounting or payment practices, or perhaps a temporary acceleration in settling payables, which warrants further scrutiny as such spikes are atypical in standard operational contexts.
Working Capital Turnover:
This ratio increased from 2.47 in 2021 to 3.41 in 2022, reaching 4.32 in 2023. The upward movement indicates that the company is generating more sales per unit of working capital, pointing to enhanced efficiency in using short-term assets and liabilities to support sales. The level then slightly declines to 3.78 in 2024 and 3.48 in 2025, but the overall trend review suggests sustained operational productivity improvements.
Summary:
Overall, the data reflects a trajectory of improving operational efficiency, notably through increased inventory and receivables turnovers, which imply more effective inventory and receivables management. The significant rise in payables turnover in 2024, while potentially positive, may also suggest shifts in payment practices that could merit additional examination. The consistent improvement in working capital turnover underscores the company’s capacity to generate higher sales relative to its short-term asset base. Continuous monitoring of these ratios will be necessary to confirm ongoing efficiency gains and to interpret the implications of the sharp fluctuations observed in payables turnover ratios.
Average number of days
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 67.30 | 116.24 | 136.88 |
| Days of sales outstanding (DSO) | days | 79.80 | 75.95 | 72.60 | 81.50 | 90.00 |
| Number of days of payables | days | 10.52 | 8.40 | 73.00 | 141.76 | 200.45 |
The analysis of Korn Ferry’s activity ratios over the specified periods reveals significant trends and shifts in operational efficiency and working capital management.
Days of Inventory on Hand (DOH):
There has been a marked decrease in inventory turnover days from 136.88 days as of April 30, 2021, to 67.30 days as of April 30, 2023. This decline indicates that the company is managing its inventory more efficiently, holding less inventory relative to its sales or service activity, which may improve cash flow and reduce holding costs. The absence of data beyond April 30, 2023, precludes observing further changes.
Days of Sales Outstanding (DSO):
The number of days outstanding for receivables has declined from 90.00 days in April 2021 to 72.60 days in April 2023, suggesting improved accounts receivable collection processes and enhanced credit management. From 2023 onwards, there is a slight upward trend, with DSO increasing marginally to 75.95 days in April 2024 and further to 79.80 days in April 2025, which could imply a slight relaxation in receivables collection efficiency or changes in credit terms.
Number of Days of Payables:
The payable days increased substantially from 200.45 days in April 2021 to 73.00 days in April 2023, indicating a reduction in the duration the company takes to settle its liabilities. This reduction may reflect a strategic shift toward more prompt payments or changes in supplier payment terms. Notably, by April 2024, payable days sharply decreased to 8.40 days, and slightly increased to 10.52 days in April 2025, implying a rapid change in payable practices, possibly due to contractual or financial constraints, or a strategic decision to pay off obligations more promptly.
Overall Observation:
The trends demonstrate an effort toward operational efficiency, notably through reduced inventory and receivables days up to April 2023. The recent changes in payable days suggest a shift in working capital strategy, possibly aiming to improve liquidity or respond to supplier relationships. The data indicates Korn Ferry is actively managing its activity ratios to optimize cash flow and operational performance, with noteworthy improvements in inventory and receivables management complemented by adjustments in payable terms.
Long-term
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 17.69 | 8.64 | 13.81 |
| Total asset turnover | 0.72 | 0.76 | 0.80 | 0.76 | 0.60 |
The analysis of Korn Ferry’s long-term activity ratios reveals insights into the company’s asset utilization efficiency over the specified periods. The fixed asset turnover ratio demonstrates significant fluctuation, with a notable decline from 13.81 in April 2021 to 8.64 in April 2022, indicating a decrease in the efficiency of utilizing fixed assets to generate revenue during that interval. However, the ratio markedly recovers, reaching 17.69 in April 2023, suggesting an improvement or re-optimization of fixed asset utilization. Data for April 2024 and April 2025 are not provided, precluding further trend analysis beyond 2023.
In contrast, the total asset turnover ratio exhibits a steady upward trend from 0.60 in April 2021 to 0.80 in April 2023, reflecting enhanced overall efficiency in using total assets to generate sales. Post-2023 figures indicate a slight decline to 0.76 in April 2024, followed by a marginal decrease to 0.72 in April 2025, suggesting a modest reduction in asset utilization efficiency over these periods.
Overall, the data indicates that Korn Ferry experienced a significant improvement in fixed asset utilization efficiency in 2023 after a prior decline, while the total asset efficiency has been generally improving since 2021 but shows signs of slight erosion in the most recent periods. This pattern of ratios highlights the company’s dynamic asset management dynamics and potential adjustments in operational focus or capital investment strategies.