BioLife Solutions Inc (BLFS)

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	200.37	92.95	67.29	183.79	171.30
Days of sales outstanding (DSO)	days	34.15	47.75	76.94	71.31	60.77
Number of days of payables	days	24.68	7.77	29.63	96.90	54.22
Cash conversion cycle	days	209.85	132.92	114.60	158.20	177.85

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 200.37 + 34.15 – 24.68
= 209.85

The cash conversion cycle of BioLife Solutions Inc has shown a fluctuating trend over the past five years. As of December 31, 2020, the company's cash conversion cycle was 177.85 days, indicating that it took the company approximately 177.85 days to convert its investments in inventory and accounts receivable into cash.

By December 31, 2021, BioLife Solutions Inc had managed to reduce its cash conversion cycle to 158.20 days, suggesting an improvement in its efficiency in converting its resources into cash. This trend continued in 2022, with the cash conversion cycle further decreasing to 114.60 days, reflecting a more streamlined process in managing inventory and receivables.

However, by the end of 2023, the cash conversion cycle increased to 132.92 days, indicating a slight slowdown in the company's cash conversion efficiency compared to the previous year. The trend reversed significantly by December 31, 2024, with the cash conversion cycle surging to 209.85 days, representing a substantial lengthening of the time taken to convert investments into cash.

Overall, the fluctuation in BioLife Solutions Inc's cash conversion cycle suggests variations in the company's management of working capital and operational efficiency over the years. It would be crucial for the company to closely monitor and optimize its cash conversion cycle to ensure effective cash flow management and sustainable business operations.