@Elpaso96, in answer to your recent question “How quickly can they (Zoono) collect cash after invoicing”, I’ve put together a breakdown of Zoono’s cash conversion cycle (CCC) over the past 5 years (see attached).
Clearly, the CCC has been increasing over time, however I don’t believe the main cause is due to delayed receipts from customers. This can be seen in the DSO values which show that on average, Zoono’s customers are making payment within a couple of months of invoicing. That’s a pretty good collection period for any business.
Where I think the problem lies for Zoono is the cash tied up in its inventory, as illustrated by the high DIO values. One reason for such a high commitment to inventory may be due to Zoono looking to promote its reliability of supply through having sufficient stock on hand as it develops a number of new markets in quick succession. Once those customers become more ‘sticky’, Zoono could look to improve its inventory management practices (ie. better forecasting, automation, pricing strategies).