KLA-Tencor Corporation (KLAC)
Cash conversion cycle
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 281.99 | 282.85 | 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 | 195.34 | 190.60 | 197.08 | 218.81 |
| Days of sales outstanding (DSO) | days | 68.32 | 64.26 | 72.24 | 60.59 | 62.88 | 68.38 | 81.14 | 70.06 | 73.13 | 69.37 | 78.17 | 72.17 | 68.93 | 68.06 | 73.34 | 63.40 | 69.76 | 72.88 | 82.44 | 79.73 |
| Number of days of payables | days | 33.40 | 33.37 | 35.33 | 32.19 | 32.10 | 35.42 | 46.98 | 45.84 | 45.04 | 45.72 | 43.28 | 46.88 | 45.04 | 41.09 | 38.29 | 37.66 | 39.38 | 36.67 | 40.42 | 38.62 |
| Cash conversion cycle | days | 316.91 | 313.74 | 321.89 | 294.60 | 279.70 | 270.01 | 258.73 | 254.34 | 246.22 | 237.33 | 243.32 | 236.44 | 231.31 | 228.94 | 242.29 | 232.11 | 225.73 | 226.81 | 239.10 | 259.92 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 281.99 + 68.32 – 33.40
= 316.91
The cash conversion cycle of KLA-Tencor Corporation has exhibited fluctuations over the past several quarters. Generally, a lower cash conversion cycle is indicative of more efficient working capital management, while a higher cycle suggests potential inefficiencies.
Analyzing the trend, we observe that over the quarters, the cash conversion cycle has ranged from 225.73 days to 321.89 days. The company experienced a peak in its cash conversion cycle during December 2023 at 321.89 days, indicating that it took longer for the company to convert its investments in inventory and accounts receivable into cash during that period. On the other hand, the lowest cycle was observed in June 2020 at 225.73 days, suggesting a more efficient cash management process during that quarter.
Overall, the trend shows some fluctuations in the cash conversion cycle, signifying potential variations in the company's efficiency in managing its working capital. Further analysis and comparison with industry benchmarks may provide additional insights into the effectiveness of KLA-Tencor's cash management practices.
Peer comparison
Jun 30, 2024
See also:
KLA-Tencor Corporation Cash Conversion Cycle (Quarterly Data)