ANI Pharmaceuticals Inc (ANIP)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	100.71	104.05	110.13	114.25	120.98	111.88	117.54	117.87	147.69	152.69	213.04	256.31	254.63	268.69	254.80	274.93	278.36	257.34	250.14	228.79
Days of sales outstanding (DSO)	days	130.21	156.21	170.28	193.85	209.70	199.87	239.13	230.39	231.40	189.96	164.20	162.82	171.70	157.27	136.80	147.80	127.46	119.63	129.45	118.30
Number of days of payables	days	33.22	33.26	30.09	36.03	33.65	22.16	35.11	31.27	41.52	28.50	40.88	58.89	47.16	61.10	68.88	64.88	84.42	61.04	54.17	57.26
Cash conversion cycle	days	197.70	227.00	250.32	272.08	297.03	289.59	321.56	317.00	337.57	314.15	336.36	360.24	379.17	364.87	322.72	357.85	321.41	315.93	325.42	289.83

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 fluctuations over the past eight quarters. The trend indicates that the company has been efficiently managing its working capital in recent quarters as the cash conversion cycle has decreased from 406.58 days in Q1 2022 to 271.36 days in Q4 2023.

A lower cash conversion cycle indicates that ANI Pharmaceuticals Inc is taking less time to convert its inventory and accounts receivable into cash, which is a positive sign of effective operations. The company has been able to streamline its processes, improve inventory turnover, and collect receivables more efficiently, leading to a shorter cash conversion cycle.

The decreasing trend in the cash conversion cycle suggests that ANI Pharmaceuticals Inc has been successful in managing its liquidity and working capital effectively, potentially resulting in improved financial performance and profitability. However, it is essential for the company to continue monitoring and optimizing its cash conversion cycle to ensure sustainable growth and financial health.