Kulicke and Soffa Industries Inc (KLIC)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 148.29 | 206.64 | 89.39 | 74.42 | 125.49 |
| Days of sales outstanding (DSO) | days | 100.22 | 77.97 | 75.09 | 101.30 | 116.35 |
| Number of days of payables | days | 49.10 | 46.88 | 32.53 | 68.78 | 64.75 |
| Cash conversion cycle | days | 199.41 | 237.72 | 131.95 | 106.94 | 177.09 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 148.29 + 100.22 – 49.10
= 199.41
The cash conversion cycle of Kulicke and Soffa Industries Inc has fluctuated over the past five years. In 2024, the cash conversion cycle decreased to 199.41 days compared to the previous year, indicating an improvement in the company's efficiency in converting its investments in inventory and receivables into cash. However, compared to 2022 and 2021, where the cash conversion cycle was 131.95 days and 106.94 days respectively, the company took longer to convert its resources into cash in 2024.
In 2023, the cash conversion cycle was 237.72 days, showing that the company took a longer period to convert its investments into cash, possibly indicating issues with inventory turnover, payables management, or collection of receivables. The significant increase from 2022 to 2023 suggests potential inefficiencies in the company's working capital management during that period.
In 2020, the cash conversion cycle was 177.09 days, reflecting a longer period to convert investments into cash compared to 2022 and 2021. This increase in the cash conversion cycle could indicate delays in the company's operating cycle or challenges in managing working capital efficiently.
Overall, there have been fluctuations in Kulicke and Soffa Industries Inc's cash conversion cycle over the past five years, with improvements in some years and challenges in others. It is essential for the company to focus on optimizing its working capital management to enhance efficiency in converting investments into cash and maintaining a healthy cash flow position.
Peer comparison
Sep 30, 2024