Korn Ferry (KFY)
Cash conversion cycle
| 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 | Apr 30, 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 | 75.11 |
| Days of sales outstanding (DSO) | days | 76.66 | 77.18 | 81.98 | 75.95 | 84.08 | 84.49 | 82.85 | 81.20 | 88.77 | 91.99 | 88.95 | 85.90 | 95.17 | 103.96 | 96.87 | 98.02 | 105.27 | 101.19 | 83.34 | 80.47 |
| Number of days of payables | days | 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 | 127.79 |
| Cash conversion cycle | days | 67.58 | 69.64 | 71.44 | 61.69 | 63.43 | 32.21 | 22.33 | 75.50 | 19.22 | 87.75 | 85.00 | -55.86 | -57.38 | 86.57 | 72.84 | 34.45 | 66.50 | 78.45 | 77.22 | 27.79 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 76.66 – 9.08
= 67.58
The data presented depicts Korn Ferry's cash conversion cycle (CCC) over multiple reporting periods, reflecting variability in the company's operational efficiency and working capital management.
Between April 30, 2020, and October 31, 2020, the CCC increased markedly from approximately 27.79 days to 78.45 days, indicating a lengthening of the cycle by roughly 50 days. This suggests delays either in collection processes, longer receivables periods, or extended payables. The subsequent period, ending January 31, 2021, saw a slight reduction to 66.50 days, yet the cycle remained relatively elevated, implying sustained inefficiencies.
In 2021, the CCC fluctuated notably from a low of around 34.45 days in April to as high as 86.57 days in October. Such volatility indicates inconsistent working capital management, possibly influenced by seasonal factors or strategic changes in client engagement.
A significant anomaly occurred in early 2022, with the CCC turning negative, recorded at -57.38 days in January, then at -55.86 days in April. Negative CCC values imply the company collects cash from clients before paying its suppliers, enabling some degree of cash inflow ahead of outflows, which can enhance liquidity. The negative cycle persisted through July and October 2022, albeit with increased days (85.00 and 87.75 days respectively), signaling a reversal or stabilization of the earlier negative trend.
From early 2023 onward, the cycle demonstrates a reduction in duration, with positive CCC values again, reaching as low as 19.22 days in January 2023; however, it increased again to 75.50 days by April 2023. The cycle thereafter remains moderate, fluctuating between approximately 22 and 70 days, with data through October 2024 showing values in the 69-71 day range. The latest recorded figure in January 2025 indicates a CCC of approximately 67.58 days, reflecting a persistent cycle length.
Overall, the trends in the cash conversion cycle suggest that Korn Ferry experienced periods of operational efficiency, notably during early 2023, characterized by shorter cycles. The extended or fluctuating cycles in other periods may be associated with strategic adjustments, seasonal client demand, or supply chain practices. The occurrence of negative cycles in 2022 indicates a temporary advantage in working capital management, though this was not sustained. The current approach appears to balance between shorter and moderate cycle durations, implying ongoing management of receivables, payables, and inventory to optimize cash flow.
Peer comparison
Jan 31, 2025