Korn Ferry (KFY)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 62.23 | 68.29 | 68.61 | 67.14 | 71.84 | 73.44 | 85.40 | 83.97 | 72.22 | 80.11 | 96.93 | 89.50 | 86.65 | 93.28 | 88.56 | 74.42 | 68.94 | 84.66 | 84.32 | 79.34 |
April 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 70.53 – 8.31
= 62.23
The cash conversion cycle for Korn Ferry has been fluctuating over the past several periods. The cycle, which represents the time it takes for a company to convert its resources into cash flow, reached a peak of 96.93 days in the third quarter of 2021 and has since shown some improvement.
In recent quarters, Korn Ferry has managed to reduce the cash conversion cycle to around 62-73 days, indicating a more efficient cash management process. However, it is important to note that the cycle remains relatively high compared to industry averages, suggesting potential room for further optimization.
Overall, Korn Ferry should continue monitoring and striving to improve its cash conversion cycle to enhance liquidity and operational efficiency.
Peer comparison
Apr 30, 2024