diff --git a/codeflash/code_utils/coverage_utils.py b/codeflash/code_utils/coverage_utils.py
index 70b0d2e7f..8dd5e6c32 100644
--- a/codeflash/code_utils/coverage_utils.py
+++ b/codeflash/code_utils/coverage_utils.py
@@ -44,16 +44,24 @@ def build_fully_qualified_name(function_name: str, code_context: CodeOptimizatio
 def generate_candidates(source_code_path: Path) -> set[str]:
     """Generate all the possible candidates for coverage data based on the source code path."""
     candidates = set()
-    candidates.add(source_code_path.name)
-    current_path = source_code_path.parent
-
-    last_added = source_code_path.name
-    while current_path != current_path.parent:
-        candidate_path = (Path(current_path.name) / last_added).as_posix()
+    # Add the filename as a candidate
+    name = source_code_path.name
+    candidates.add(name)
+
+    # Precompute parts for efficient candidate path construction
+    parts = source_code_path.parts
+    n = len(parts)
+
+    # Walk up the directory structure without creating Path objects or repeatedly converting to posix
+    last_added = name
+    # Start from the last parent and move up to the root, exclusive (skip the root itself)
+    for i in range(n - 2, 0, -1):
+        # Combine the ith part with the accumulated path (last_added)
+        candidate_path = f"{parts[i]}/{last_added}"
         candidates.add(candidate_path)
         last_added = candidate_path
-        current_path = current_path.parent
 
+    # Add the absolute posix path as a candidate
     candidates.add(source_code_path.as_posix())
     return candidates