Artivion Inc (AORT)
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 | 208.32 | 239.70 | 244.32 | 277.28 | 312.01 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 208.32 | 239.70 | 244.32 | 277.28 | 312.01 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 208.32 + — – —
= 208.32
The cash conversion cycle of Artivion Inc has shown a decreasing trend over the years, indicating improved efficiency in managing its working capital. From 312.01 days in December 2020, the cycle has decreased to 208.32 days by December 2024. This suggests that the company is speeding up the conversion of its investments in inventory into cash receipts from sales.
A shorter cash conversion cycle is generally seen as positive as it indicates that the company is able to generate cash more quickly from its operational activities. Artivion Inc's decreasing trend in the cash conversion cycle implies that the company has been able to streamline its operations, manage inventory levels more effectively, negotiate better payment terms with suppliers, and collect receivables more efficiently.
Overall, the improving trend in Artivion Inc's cash conversion cycle reflects a positive financial management strategy, which can lead to enhanced liquidity, profitability, and overall financial performance in the long term.
Peer comparison
Dec 31, 2024