Korn Ferry (KFY)

Activity ratios

Short-term

Turnover ratios

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 Oct 31, 2019 Jul 31, 2019
Inventory turnover — — — — 45.66 — 45.66 39.22 — — 48.78 40.35 51.04 49.72 48.27 44.06 58.74 46.87 50.22 47.46
Receivables turnover 5.17 4.81 4.81 4.85 5.03 4.54 4.26 4.33 4.48 4.10 3.73 4.02 4.06 3.82 4.05 4.87 4.98 4.30 4.34 4.60
Payables turnover 43.94 48.32 50.03 44.65 42.09 52.69 43.56 38.05 39.45 41.11 43.24 35.28 34.86 37.74 39.74 41.69 34.53 45.64 51.87 47.65
Working capital turnover 3.79 4.04 4.33 4.04 4.33 3.77 3.93 3.40 3.41 3.03 2.66 2.63 2.47 2.52 2.88 3.04 3.23 3.19 3.32 3.53

From the data provided on Korn Ferry's activity ratios, we can interpret the following:

1. Inventory Turnover: This ratio measures how efficiently the company is managing its inventory. A higher turnover indicates that inventory is being sold and replenished quickly. Korn Ferry's inventory turnover has been fluctuating but generally in a healthy range, with a significant increase in the most recent quarter compared to the preceding ones. This suggests improved inventory management efficiency.

2. Receivables Turnover: The receivables turnover ratio reflects how well the company is collecting outstanding receivables from customers. Korn Ferry's receivables turnover has shown some variability over the periods but has generally remained stable within a reasonable range. The most recent quarter saw a slight increase in turnover, indicating a faster collection of receivables.

3. Payables Turnover: This ratio sheds light on how quickly the company is paying its suppliers. A higher turnover suggests efficient payment practices. Korn Ferry's payables turnover has fluctuated over the periods but has generally been within an acceptable range. Notably, there was a significant decrease in payables turnover in the last two quarters, which could be a reflection of changing payment terms or supplier relationships.

4. Working Capital Turnover: This ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher turnover implies better utilization of resources. Korn Ferry's working capital turnover has shown some variation across the periods, with a generally decreasing trend in recent quarters, indicating a potential decrease in efficiency in converting working capital into revenue.

In conclusion, Korn Ferry demonstrates solid performance in managing its inventory and receivables turnover, while showing some fluctuations in payables turnover and a declining trend in working capital turnover. This analysis suggests that the company may need to closely monitor its working capital efficiency and payment practices to optimize its operational performance.

Average number of days

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 Oct 31, 2019 Jul 31, 2019
Days of inventory on hand (DOH) days — — — — 7.99 — 7.99 9.31 — — 7.48 9.05 7.15 7.34 7.56 8.28 6.21 7.79 7.27 7.69
Days of sales outstanding (DSO) days 70.53 75.85 75.90 75.31 72.51 80.37 85.78 84.26 81.47 88.99 97.89 90.80 89.97 95.61 90.19 74.89 73.30 84.87 84.09 79.31
Number of days of payables days 8.31 7.55 7.30 8.17 8.67 6.93 8.38 9.59 9.25 8.88 8.44 10.35 10.47 9.67 9.19 8.75 10.57 8.00 7.04 7.66

Days of inventory on hand (DOH) for Korn Ferry have shown some fluctuations over the past few periods, ranging from as low as 6.21 days to as high as 9.31 days. This indicates that the company has managed its inventory levels differently, potentially due to changes in demand or inventory management practices.

Days of sales outstanding (DSO) have also varied, with values ranging from 70.53 days to 97.89 days. Higher DSO values suggest that Korn Ferry takes longer to collect its accounts receivable, which could result from offering lenient credit terms or difficulties in collecting from customers.

The number of days of payables has ranged from 6.93 days to 10.57 days. A higher number of days of payables means that the company takes longer to pay its suppliers, which could imply favorable payment terms negotiated with suppliers or potential liquidity constraints.

Overall, Korn Ferry's activity ratios indicate varying efficiency in managing its inventory, collecting receivables, and paying payables over the analyzed periods. It is important for the company to monitor and optimize these ratios to improve working capital management and overall financial performance.

Long-term

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 Oct 31, 2019 Jul 31, 2019
Fixed asset turnover 17.30 17.35 17.17 17.26 17.71 18.42 18.64 18.76 19.14 18.86 17.93 15.98 13.81 12.75 12.95 13.07 13.86 14.18 14.14 14.50
Total asset turnover 0.76 0.80 0.85 0.87 0.80 0.84 0.87 0.86 0.76 0.74 0.73 0.70 0.60 0.60 0.65 0.70 0.72 0.74 0.80 0.83

The fixed asset turnover ratio for Korn Ferry has been relatively stable over the past few years, ranging from 15.98 to 19.14. This indicates that the company is efficient in generating revenue from its investment in fixed assets. A consistently high fixed asset turnover ratio suggests that Korn Ferry is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio for Korn Ferry has fluctuated over the same period, ranging from 0.60 to 0.87. The ratio measures the company's ability to generate sales from its total assets. A higher total asset turnover ratio is generally preferred as it indicates that the company is efficiently utilizing all its resources to generate revenue.

Overall, the analysis of both fixed asset turnover and total asset turnover ratios suggests that Korn Ferry has been effectively managing its assets to generate revenue. However, the fluctuations in the total asset turnover ratio may indicate changes in the company's asset base or sales performance over time.