Alkermes Plc (ALKS)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.11 | 76.97 | 68.89 | 60.66 | 44.58 |
| Days of sales outstanding (DSO) | days | 74.00 | 95.60 | 98.37 | 97.27 | 81.14 |
| Number of days of payables | days | 24.34 | 13.94 | 25.53 | 22.21 | 23.76 |
| Cash conversion cycle | days | 118.77 | 158.64 | 141.73 | 135.71 | 101.96 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.11 + 74.00 – 24.34
= 118.77
The cash conversion cycle of Alkermes plc has shown variability over the past five years. In 2023, the company's cash conversion cycle was 341.84 days, indicating that it took approximately 341.84 days for the company to convert its investments in inventory and receivables into cash from sales. Compared to the previous year, the cash conversion cycle increased slightly from 343.18 days in 2022.
In 2021, the cash conversion cycle was 272.35 days, reflecting a significant decrease from the previous year's 259.83 days in 2020. This indicates that the company was more efficient in managing its working capital and converting assets into cash during that year.
In 2019, Alkermes plc had the most efficient cash conversion cycle, with only 176.34 days, demonstrating a strong ability to manage its working capital effectively and convert it into cash promptly.
Overall, the trend in Alkermes plc's cash conversion cycle has shown fluctuations over the years, with variations in the efficiency of its working capital management. It is important for the company to analyze the factors contributing to these fluctuations and implement strategies to optimize its cash conversion cycle for improved financial performance and liquidity management.
Peer comparison
Dec 31, 2023