ANI Pharmaceuticals Inc (ANIP)

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	100.71	120.03	130.17	254.63	278.36
Days of sales outstanding (DSO)	days	130.21	209.70	231.40	175.71	127.46
Number of days of payables	days	33.22	33.39	36.59	47.16	84.42
Cash conversion cycle	days	197.70	296.34	324.97	383.19	321.41

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 100.71 + 130.21 – 33.22
= 197.70

The cash conversion cycle of ANI Pharmaceuticals Inc has shown fluctuation over the past five years. In 2023, the company improved its cash conversion cycle significantly to 271.36 days compared to the previous year, where it stood at 390.87 days. This indicates that the company has become more efficient in managing its cash flows from the beginning to the end of the production cycle and in collecting receivables from customers.

Despite the improvement in 2023, the cash conversion cycle in 2021 and 2022 was relatively high at 430.10 days and 375.19 days, respectively. This suggests that the company may have faced challenges in optimizing its working capital management during those years, resulting in a longer cash conversion cycle.

In 2019, the cash conversion cycle was at 321.41 days, showing a moderate level of efficiency in managing cash flows compared to the subsequent years. Overall, the trend in ANI Pharmaceuticals Inc's cash conversion cycle indicates fluctuations in working capital efficiency, with the company making noticeable improvements in 2023. It would be important for the company to continue monitoring and optimizing its cash conversion cycle to enhance its liquidity and operational efficiency.