Bio-Rad Laboratories Inc (BIO)
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 | 233.58 | 228.95 | 212.61 | 162.94 | 205.02 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 233.58 | 228.95 | 212.61 | 162.94 | 205.02 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 233.58 + — – —
= 233.58
Bio-Rad Laboratories Inc's cash conversion cycle has shown varying trends over the years. In 2020, the company had a relatively long cash conversion cycle of 205.02 days, indicating a slower rate of converting its investments in inventory and receivables into cash. However, in 2021, there was an improvement as the cash conversion cycle decreased to 162.94 days, suggesting a more efficient management of working capital.
The following years saw fluctuations in the cash conversion cycle - rising to 212.61 days in 2022, further increasing to 228.95 days in 2023, and reaching its peak at 233.58 days in 2024. These trends indicate that Bio-Rad Laboratories Inc may be facing challenges in managing its inventory, receivables, and payables efficiently, leading to a longer cash cycle.
Overall, the company should focus on streamlining its operations, optimizing inventory levels, and enhancing receivables management to shorten the cash conversion cycle and improve its overall liquidity position.
Peer comparison
Dec 31, 2024