Bio-Rad Laboratories Inc (BIO)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 233.81 | 249.58 | 248.85 | 235.39 | 228.87 | 224.26 | 222.63 | 219.90 | 213.14 | 203.46 | 194.53 | 176.49 | 162.94 | 167.96 | 174.89 | 187.24 | 205.02 | 217.97 | 219.33 | 190.60 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 233.81 | 249.58 | 248.85 | 235.39 | 228.87 | 224.26 | 222.63 | 219.90 | 213.14 | 203.46 | 194.53 | 176.49 | 162.94 | 167.96 | 174.89 | 187.24 | 205.02 | 217.97 | 219.33 | 190.60 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 233.81 + — – —
= 233.81
The cash conversion cycle of Bio-Rad Laboratories Inc has experienced fluctuations over the years. The cycle represents the time it takes for the company to convert its resources invested in inventory and accounts receivable into cash flows from sales.
From March 31, 2020, to June 30, 2021, the cash conversion cycle showed a decreasing trend, indicating an improvement in the company's efficiency in managing its cash conversion process. However, from June 30, 2021, to December 31, 2024, there was an increasing trend in the cash conversion cycle, suggesting a potential issue with managing inventory or collecting accounts receivable efficiently.
Bio-Rad Laboratories Inc may need to focus on optimizing its inventory turnover and accounts receivable collection processes to reduce the cash conversion cycle and improve liquidity. Analyzing the reasons behind the fluctuations in the cash conversion cycle over time can provide insights into potential operational inefficiencies that need to be addressed for better cash flow management.
Peer comparison
Dec 31, 2024