OSI Systems Inc (OSIS)
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 | 131.99 | 144.17 | 146.97 | 157.55 | 143.18 | 168.15 | 184.84 | 180.30 | 145.50 | 171.04 | 168.69 | 173.96 | 160.61 | 165.83 | 162.51 | 156.53 | 147.71 | 150.36 | 140.35 | 130.78 |
| Days of sales outstanding (DSO) | days | 178.49 | 145.25 | 155.71 | 156.51 | 153.75 | 125.12 | 98.82 | 91.64 | 108.73 | 91.19 | 98.92 | 97.63 | 95.00 | 87.60 | 89.71 | 91.00 | 92.50 | 86.46 | 87.23 | 81.76 |
| Number of days of payables | days | 91.19 | 56.84 | 61.13 | 66.31 | 68.78 | 65.36 | 67.85 | 70.79 | 59.84 | 58.54 | 60.37 | 69.41 | 60.23 | 62.46 | 62.31 | 68.60 | 70.92 | 65.08 | 47.47 | 47.41 |
| Cash conversion cycle | days | 219.29 | 232.58 | 241.54 | 247.76 | 228.15 | 227.91 | 215.81 | 201.15 | 194.40 | 203.69 | 207.23 | 202.18 | 195.39 | 190.97 | 189.90 | 178.92 | 169.29 | 171.74 | 180.11 | 165.13 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 131.99 + 178.49 – 91.19
= 219.29
The analysis of OSI Systems Inc.’s cash conversion cycle (CCC) over the period from September 2020 to June 2025 reveals a consistent upward trend, indicating escalating operating cycle durations. Starting at 165.13 days in September 2020, the CCC gradually increased over subsequent periods, culminating at approximately 232.58 days by March 2025.
During this timeframe, the CCC experienced incremental increases with some fluctuations. Notable peaks include December 2024 at approximately 241.54 days and March 2024 at 227.91 days, reflecting longer periods to convert investments into cash flows. Periods such as June 2023 and September 2024 reveal especially elevated values, suggesting extended inventory holding times, slower receivables collection, or lengthened payables deferral.
The rising CCC indicates that OSI Systems Inc. is taking progressively longer to convert its investments in inventory and receivables into cash from sales. This extension may result from strategic decisions to hold inventory longer, extended credit terms offered to customers, or delays in collection processes. Alternatively, it may also signify operational inefficiencies or shifts in supply chain and credit policies.
Overall, the trend suggests a deteriorating efficiency in converting operational activities into cash, which could impact working capital management, liquidity, and overall cash flow. Continuous monitoring and potential adjustments in inventory and receivables management practices might be warranted to optimize the cash conversion cycle and improve liquidity position.
Peer comparison
Jun 30, 2025