ACADIA Pharmaceuticals Inc (ACAD)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	97.89	285.89	238.26	150.28	171.97
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	97.89	285.89	238.26	150.28	171.97

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 97.89 + — – —
= 97.89

The cash conversion cycle of ACADIA Pharmaceuticals Inc has shown fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 171.97 days, indicating that it took approximately this time to convert its investments in inventory and other resources into cash flows from sales. By December 31, 2021, the cycle had improved to 150.28 days, reflecting a more efficient management of working capital.

However, there was a significant deterioration in the cash conversion cycle by December 31, 2022, where it extended to 238.26 days. This lengthening suggests that the company may have experienced challenges in converting its resources into cash, potentially due to issues such as slow sales or inefficient inventory management.

The situation worsened further by December 31, 2023, with a cash conversion cycle of 285.89 days, indicating prolonged delays in the conversion process. This could have potential implications on the company's liquidity and operational efficiency.

Nevertheless, by December 31, 2024, there was a notable improvement in the cash conversion cycle, which reduced to 97.89 days. This turnaround suggests that the company may have taken corrective actions to streamline its working capital processes and enhance its cash conversion efficiency.

Overall, the fluctuating trends in ACADIA Pharmaceuticals Inc's cash conversion cycle highlight the importance of effectively managing working capital to ensure optimal liquidity and operational performance.