Baxter International Inc (BAX)
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 | 265.57 | 104.77 | 102.11 | 116.60 | 98.69 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 265.57 | 104.77 | 102.11 | 116.60 | 98.69 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 265.57 + — – —
= 265.57
Based on the provided data for Baxter International Inc's cash conversion cycle, we observe fluctuations over the years.
- As of December 31, 2020, the cash conversion cycle was 98.69 days, indicating that Baxter was efficiently managing its working capital and converting its inventory and receivables into cash within a reasonable timeframe.
- However, by December 31, 2021, the cash conversion cycle increased to 116.60 days, reflecting a potential delay in converting inventory and receivables into cash, which may lead to liquidity challenges.
- The cash conversion cycle improved slightly to 102.11 days by December 31, 2022, suggesting that Baxter may have implemented strategies to optimize its working capital management and enhance cash flow efficiency.
- By December 31, 2023, the cash conversion cycle increased marginally to 104.77 days, indicating that Baxter maintained relatively stable liquidity and operational efficiency in converting its resources into cash within a reasonable timeframe.
- Notably, by December 31, 2024, the cash conversion cycle spiked significantly to 265.57 days, signifying a substantial delay in the conversion of inventory and receivables into cash. This notable increase may raise concerns about liquidity management and operational effectiveness.
In summary, Baxter International Inc's cash conversion cycle has experienced fluctuations over the years, demonstrating varying levels of efficiency in converting working capital components into cash. It is crucial for Baxter to monitor and potentially improve its cash conversion cycle to ensure optimal liquidity management and operational performance.
Peer comparison
Dec 31, 2024