Biogen Inc (BIIB)

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	166.44	200.35	98.18	95.23	96.99	84.61	78.09	73.70	87.07	128.57	147.27	176.45	216.06	212.94	199.56	173.40	150.11	137.42	139.82	142.54
Days of sales outstanding (DSO)	days	61.75	—	—	59.04	61.17	55.25	53.81	55.06	51.50	56.65	52.67	53.70	51.96	51.82	53.75	52.96	47.74	49.58	50.83	55.20
Number of days of payables	days	26.56	29.57	32.79	36.52	35.46	23.58	26.23	24.18	37.96	40.81	44.05	64.81	91.98	82.55	80.42	78.54	99.08	69.86	67.88	69.95
Cash conversion cycle	days	201.64	170.79	65.38	117.75	122.70	116.28	105.66	104.58	100.61	144.41	155.89	165.34	176.04	182.21	172.90	147.82	98.77	117.14	122.76	127.79

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 166.44 + 61.75 – 26.56
= 201.64

The cash conversion cycle of Biogen Inc has shown varying trends in recent quarters. In Q3 2023, the company experienced an increase in its cash conversion cycle to 453.97 days, indicating a slower conversion of inventory and receivables into cash. This was a significant jump compared to the previous quarter's cycle of 383.96 days.

Looking back further, in Q2 2023, the company managed to reduce its cash conversion cycle to 218.94 days, showing an efficient management of working capital and a quicker conversion of assets into cash. This improvement was also seen in Q1 2023, where the cycle decreased to 205.06 days.

Comparing the latest figures to the same period in the previous year, there has been a general upward trend in the cash conversion cycle. In Q4 2022, the cycle stood at 213.29 days, slightly higher than the most recent quarter. However, there were better performances in Q3 and Q2 of 2022, where the cycles were 222.79 days and 198.94 days respectively.

Overall, Biogen Inc's cash conversion cycle has shown fluctuations over the quarters, with some periods of improved efficiency in working capital management and others where the company struggled to convert assets into cash quickly. It is important for the company to analyze the causes behind these fluctuations and implement strategies to optimize its cash conversion cycle for sustained financial health.