Korn Ferry (KFY)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.79 | 1.83 | 1.86 | 2.08 | 1.68 | 1.88 | 1.96 | 2.18 | 1.79 | 1.96 | 2.22 | 2.34 | 1.98 | 2.07 | 2.09 | 2.23 | 1.98 | 2.14 | 2.33 | 2.37 |
| Quick ratio | 1.63 | 1.63 | 1.62 | 1.81 | 1.49 | 1.69 | 1.75 | 1.96 | 1.65 | 1.79 | 2.02 | 2.11 | 1.82 | 1.87 | 1.85 | 1.97 | 1.81 | 1.92 | 2.06 | 2.10 |
| Cash ratio | 1.05 | 0.93 | 0.85 | 0.90 | 0.91 | 0.96 | 0.86 | 1.04 | 1.05 | 1.08 | 1.15 | 1.23 | 1.22 | 1.16 | 1.07 | 1.21 | 1.17 | 1.08 | 1.05 | 1.05 |
The liquidity ratios of Korn Ferry over the past several quarters indicate the company's ability to meet its short-term obligations.
The current ratio has fluctuated over the periods, ranging from a low of 1.68 to a high of 2.34. This ratio, which measures the company's ability to cover its current liabilities with its current assets, shows that Korn Ferry generally maintained a healthy level of liquidity, with the ratio consistently above 1.5.
Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also demonstrates a favorable trend for Korn Ferry. The quick ratio remained above 1.5 in most periods, indicating the company's ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which reflects the cash and cash equivalents available to cover current liabilities, indicates that Korn Ferry had a sufficient level of cash on hand to meet its immediate obligations throughout the periods analyzed. The cash ratio generally ranged between 0.85 and 1.23, suggesting that the company had a strong liquidity position.
Overall, the liquidity ratios of Korn Ferry suggest that the company has maintained a sound financial position with the ability to meet its short-term financial commitments effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Korn Ferry has fluctuated over the past few years, indicating varying efficiency in managing its working capital. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.
In the most recent period, the company's cash conversion cycle stood at 62.23 days, showing an improvement from the previous period but still indicating that Korn Ferry takes about two months to complete the cycle. This suggests that the company may be effectively managing its inventory and receivables to generate positive cash flow.
Looking at the trend over the past two years, the cash conversion cycle has shown some volatility, with periods of both improvement and deterioration. However, it is important for Korn Ferry to continue monitoring and optimizing its working capital management to ensure a more consistent and efficient cash conversion cycle in the future.
Overall, a lower cash conversion cycle indicates better efficiency in managing working capital and converting investments into cash, which can positively impact the company's liquidity and overall financial performance.