Korn Ferry (KFY)
Cash conversion cycle
| Apr 30, 2025 | Jan 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | 67.30 | — | 87.95 | 128.41 | — | — | 135.79 | 167.28 | 136.88 | 122.14 | 105.89 | 107.52 |
| Days of sales outstanding (DSO) | days | 74.72 | 76.66 | 77.18 | 81.98 | 75.95 | 84.08 | 84.49 | 82.85 | 72.60 | 88.77 | 85.83 | 84.29 | 85.90 | 89.02 | 97.92 | 90.83 | 90.00 | 95.64 | 90.21 | 74.91 |
| Number of days of payables | days | 10.52 | 9.08 | 7.54 | 10.54 | 14.26 | 20.65 | 52.28 | 60.52 | 73.00 | 69.55 | 92.18 | 132.36 | 141.76 | 152.56 | 153.18 | 191.30 | 200.45 | 160.91 | 128.63 | 113.64 |
| Cash conversion cycle | days | 64.20 | 67.58 | 69.64 | 71.44 | 61.69 | 63.43 | 32.21 | 22.33 | 66.90 | 19.22 | 81.60 | 80.35 | -55.86 | -63.54 | 80.53 | 66.80 | 26.43 | 56.87 | 67.47 | 68.79 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 74.72 – 10.52
= 64.20
The analysis of Korn Ferry’s cash conversion cycle (CCC) over the specified period reveals notable fluctuations and trends indicative of the company's operational and working capital management.
In the fiscal year ending July 31, 2020, the CCC stood at approximately 68.79 days, reflecting the duration it took for the company to convert investments in inventory and receivables into cash, net of payables. During the subsequent quarter ending October 31, 2020, the cycle slightly decreased to 67.47 days, signaling a modest improvement in liquidity timings.
A more significant reduction occurred by January 31, 2021, with the CCC declining to approximately 56.87 days, indicating an enhanced efficiency in cash conversion. The sharpest change was observed by April 30, 2021, when the cycle dropped dramatically to 26.43 days, approaching near-zero levels that suggest the company effectively minimized the time lag in cash flows, potentially due to optimized receivables collection or payables management.
However, subsequent periods experienced considerable variability. The cycle increased again to approximately 66.80 days by July 31, 2021, and further extended to 80.53 days by October 31, 2021. A noteworthy anomaly was recorded at January 31, 2022, when the CCC turned negative at around -63.54 days. Negative CCC values indicate the company received cash from clients before settling payables, signifying highly efficient cash flow timing, likely due to shorter receivables periods or extended payables terms.
This negative trend persisted into April 30, 2022, with the cycle at approximately -55.86 days, maintaining the indication of strong receivables collection relative to payables. Following this, the CCC reverted to positive territory, reaching approximately 80.35 days by July 2022 and sustaining similar levels through October 2022, around 81.60 days, illustrating a prolonged period to convert investments into cash.
In early 2023, the cycle improved markedly to 19.22 days in January, reflecting significant efficiency gains, possibly through faster receivables collection or optimized operations. By April 2023, the cycle increased to 66.90 days, with subsequent figures indicating some fluctuation: 22.33 days in July 2023 and around 32.21 days in October 2023. The latter values suggest a stabilization at a moderate level of cash conversion efficiency.
Projected values into 2024 and 2025 show the CCC maintaining levels ranging from approximately 61.69 to 71.44 days, indicative of a relatively consistent, though somewhat extended, cash cycle timeline.
In summary, Korn Ferry’s cash conversion cycle has experienced substantial variability over the analyzed period, oscillating from highly efficient near-zero or negative days to extended cycles exceeding 80 days. These fluctuations reflect shifts in operational strategies, receivables and payables management, and possibly changes in client payment practices. The periods of negative CCC highlight times of optimal cash flow timing, while longer cycles suggest periods of delayed cash realization or extended working capital requirements.
Peer comparison
Apr 30, 2025