Korn Ferry (KFY)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 69.28 | 67.55 | 66.90 | 55.98 | 26.43 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 79.80 – 10.52
= 69.28
The analysis of Korn Ferry's cash conversion cycle (CCC) over the period from April 2021 to April 2025 reveals a consistent upward trend, indicating increasing operational cycles before cash inflows occur.
Specifically, the CCC was 26.43 days as of April 30, 2021, representing a relatively short cycle and implying efficient management of receivables, inventory (if applicable), and payables during that period. By April 30, 2022, the CCC had nearly doubled to 55.98 days, reflecting a significant elongation in the time it takes for the company to convert its investments in inventory and receivables into cash, relative to its payable management.
This upward trajectory continued into 2023 and 2024, with the CCC reaching 66.90 days and then marginally increasing to 67.55 days, respectively. The steady increase beyond the two-year mark suggests a gradual elongation of the company's operational cycle, potentially due to strategic changes, shifts in client payment terms, or operational efficiencies influencing receivable collection times.
By April 2025, the CCC stood at 69.28 days, further indicating a sustained extension of the cycle. Such a trend may reflect longer customer billing periods, delays in receivables collection, or changes in the timing of payments to suppliers.
Overall, the progressive increase in Karls Ferry's cash conversion cycle over this four-year span highlights a trend towards lengthening the period to recover cash from operations. This trend warrants close monitoring as it could impact working capital management, liquidity, and overall financial flexibility.
Peer comparison
Apr 30, 2025