KLA-Tencor Corporation (KLAC)
Cash conversion cycle
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 246.73 | 254.91 | 258.22 | 279.48 | 286.90 | 285.10 | 284.97 | 266.20 | 248.92 | 237.05 | 224.58 | 230.11 | 218.13 | 213.68 | 208.43 | 211.15 | 207.42 | 201.97 | 207.24 | 206.37 |
| Days of sales outstanding (DSO) | days | 67.98 | 73.07 | 78.62 | 72.09 | 70.81 | 65.16 | 73.40 | 63.08 | 67.30 | 66.63 | 79.48 | 68.81 | 76.34 | 68.31 | 81.58 | 76.23 | 73.67 | 73.63 | 78.95 | 63.31 |
| Number of days of payables | days | 35.22 | 34.68 | 36.69 | 33.84 | 33.99 | 33.63 | 35.33 | 32.19 | 32.10 | 35.42 | 46.98 | 45.84 | 45.04 | 45.72 | 43.28 | 46.88 | 45.04 | 41.09 | 21.36 | 37.66 |
| Cash conversion cycle | days | 279.49 | 293.30 | 300.15 | 317.74 | 323.73 | 316.64 | 323.05 | 297.10 | 284.12 | 268.26 | 257.08 | 253.08 | 249.42 | 236.27 | 246.73 | 240.50 | 236.06 | 234.51 | 264.83 | 232.02 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 246.73 + 67.98 – 35.22
= 279.49
The analysis of KLA-Tencor Corporation's cash conversion cycle (CCC) over the specified period reveals a consistent upward trend from September 30, 2020, through June 30, 2025. Initially, the CCC was approximately 232 days in September 2020, gradually increasing over time to reach approximately 279.49 days as of June 30, 2025.
During the observed period, notable fluctuations occur, but the overall pattern indicates a lengthening of the cycle. Specifically, the CCC increased by nearly 70 days from September 2020 to June 2025. Significant milestones include a steady rise after March 2021, with the cycle exceeding 234 days and gradually approaching 317 days by September 2024. The highest value within this timeframe is approximately 323.73 days recorded in June 2024, followed by a slight decrease to 279.49 days in June 2025.
The prolonged and increasing CCC suggests that the company experienced greater durations in converting inventory investments into cash flows. Factors contributing to this trend could include extended inventory holding periods, delays in receivables collection, or changes in supplier payment terms. This lengthening has implications for working capital management, potentially indicating increased operating cycle inefficiencies or strategic inventory and receivables policies.
Overall, the data demonstrates that KLA-Tencor's cash conversion cycle has become progressively longer over the analyzed timeframe, which may impact liquidity and operational responsiveness if the trend persists.
Peer comparison
Jun 30, 2025
See also:
KLA-Tencor Corporation Cash Conversion Cycle (Quarterly Data)