Lumentum Holdings Inc (LITE)
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 | 144.79 | 135.35 | 126.28 | 126.57 | 127.01 | 133.53 | 159.77 | 140.16 | 126.46 | 131.51 | 120.21 | 131.90 | 98.79 | 89.56 | 82.63 | 81.31 | 74.70 | 79.88 | 77.66 | 78.15 |
| Days of sales outstanding (DSO) | days | 55.47 | 63.38 | 58.57 | 52.56 | 52.28 | 59.00 | 63.00 | 50.89 | 50.84 | 55.80 | 65.91 | 70.18 | 55.84 | 52.54 | 51.16 | 55.25 | 44.57 | 47.74 | 59.34 | 57.23 |
| Number of days of payables | days | 69.36 | 62.48 | 57.98 | 51.19 | 40.27 | 42.34 | 55.21 | 44.08 | 52.43 | 63.70 | 67.36 | 74.09 | 61.90 | 50.70 | 46.94 | 39.91 | 44.46 | 39.69 | 41.73 | 53.67 |
| Cash conversion cycle | days | 130.90 | 136.26 | 126.88 | 127.94 | 139.03 | 150.18 | 167.56 | 146.97 | 124.87 | 123.61 | 118.76 | 127.98 | 92.73 | 91.40 | 86.85 | 96.65 | 74.80 | 87.92 | 95.26 | 81.72 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 144.79 + 55.47 – 69.36
= 130.90
The cash conversion cycle (CCC) of Lumentum Holdings Inc. exhibits considerable fluctuations over the analyzed period from September 2020 to June 2025. Initially, in September 2020, the CCC was approximately 81.72 days, indicating the company's ability to convert its investments in inventory and receivables into cash relatively efficiently. However, subsequent data show an upward trend, peaking notably at 146.97 days in September 2023.
Between September 2020 and March 2021, the CCC decreased from 81.72 days to 87.92 days, reflecting a slight increase in operational efficiency or changes in working capital management. From March 2021 onward, there was an evident trend of rising CCC, reaching 96.65 days in the same quarter the following year. The cycle remained elevated and relatively stable through 2022, fluctuating around the high 80s and low 90s days, with an uptick to 127.98 days in September 2022.
A more pronounced increase occurred during 2023, culminating in a peak of approximately 167.56 days by December 2023. This indicates a substantial elongation in the time taken to convert inventory and receivables into cash, possibly due to increased inventory levels, delays in receivables collection, or changes in supplier or customer payment terms.
Moving into 2024, the CCC shows signs of cyclical reduction, decreasing to around 139.03 days by June 2024. Although the cycle continues to narrow, it remains elevated compared to pre-2022 levels. As of September 2024, the CCC further contracted to approximately 127.94 days, with a slight fluctuation around this level through the following quarters. By June 2025, the cycle stood at roughly 130.90 days, indicating a stabilization but still higher than early 2020s figures.
Overall, the data suggest that Lumentum Holdings Inc.’s cash conversion cycle experienced notable expansion beginning around late 2022 and into 2023, which could signal increased working capital demands, longer inventory holding periods, or delayed receivables. The partial recovery in 2024 points towards potential efforts to optimize working capital management, though the cycle remains relatively extended compared to initial levels.
Peer comparison
Jun 30, 2025