BioLife Solutions Inc (BLFS)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 148.69 | 67.29 | 183.79 | 171.30 | 164.31 |
| Days of sales outstanding (DSO) | days | 47.75 | 76.94 | 71.31 | 60.77 | 71.29 |
| Number of days of payables | days | 23.75 | 29.63 | 96.90 | 54.22 | 46.71 |
| Cash conversion cycle | days | 172.69 | 114.60 | 158.20 | 177.85 | 188.89 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 148.69 + 47.75 – 23.75
= 172.69
BioLife Solutions Inc's cash conversion cycle, a key indicator of the efficiency of its working capital management, has shown fluctuations over the past five years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In 2023, BioLife Solutions Inc's cash conversion cycle increased to 172.69 days, indicating a lengthening of the time it takes to convert its investments into cash. This may be a result of factors such as slower inventory turnover or longer accounts receivable collection periods.
In 2022, the company's cash conversion cycle improved to 114.60 days, reflecting better efficiency in working capital management compared to the previous year. This may indicate improved inventory management or shorter accounts receivable collection periods.
In 2021, the cash conversion cycle increased to 158.20 days, suggesting a temporary slowdown in the conversion of investments to cash compared to the previous year. This could be due to factors such as increased inventory levels or extended payment terms to customers.
In 2020 and 2019, BioLife Solutions Inc also experienced longer cash conversion cycles, with 177.85 days and 188.89 days respectively. These longer cycles indicate potential inefficiencies in working capital management during those years.
Overall, fluctuations in BioLife Solutions Inc's cash conversion cycle over the years suggest varying levels of efficiency in managing its working capital. The company should continue to monitor and improve its inventory management, accounts receivable collection, and accounts payable processes to optimize its cash conversion cycle and enhance overall financial performance.
Peer comparison
Dec 31, 2023