BioLife Solutions Inc (BLFS)
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 | 148.62 | 109.82 | 112.73 | 78.10 | 67.28 | 84.42 | 84.75 | 165.84 | 183.80 | 337.61 | 364.65 | 182.66 | 171.30 | 103.50 | 116.87 | 135.39 | 167.51 | 104.22 | 108.59 | 90.58 |
| Days of sales outstanding (DSO) | days | 47.69 | 58.20 | 60.73 | 68.18 | 76.92 | 76.64 | 77.34 | 64.11 | 71.31 | 76.46 | 103.96 | 73.79 | 60.77 | 53.93 | 43.30 | 89.16 | 71.29 | 62.74 | 58.86 | 48.27 |
| Number of days of payables | days | 23.74 | 30.35 | 30.75 | 29.34 | 29.62 | 32.87 | 29.33 | 64.31 | 96.91 | 162.53 | 138.82 | 66.95 | 54.22 | 22.08 | 33.02 | 44.04 | 47.62 | 28.74 | 17.93 | 28.20 |
| Cash conversion cycle | days | 172.58 | 137.67 | 142.72 | 116.94 | 114.58 | 128.20 | 132.76 | 165.63 | 158.20 | 251.54 | 329.79 | 189.50 | 177.85 | 135.35 | 127.15 | 180.52 | 191.18 | 138.23 | 149.52 | 110.65 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 148.62 + 47.69 – 23.74
= 172.58
The cash conversion cycle of BioLife Solutions Inc has varied over the past few years, indicating fluctuations in the company's operational efficiency. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
BioLife Solutions Inc had a relatively high cash conversion cycle of 172.58 days as of December 31, 2023, which suggests that the company takes a significant amount of time to convert its resources into cash. However, this was an improvement compared to the cycle of 251.54 days as of June 30, 2021.
The company's cash conversion cycle has shown some volatility over time, with fluctuations seen in different quarters. For instance, there was a significant increase in the cycle in Q2 of 2021, reaching 329.79 days, which could indicate challenges in managing inventory, collecting receivables, or delaying payments.
In more recent quarters, the cash conversion cycle has generally improved, with lower days indicating better efficiency in converting resources into cash. For instance, as of March 31, 2020, the cycle was 127.15 days, and by December 31, 2020, it decreased to 110.65 days. These improvements suggest that the company may have worked on optimizing its inventory management, payment terms, and collection processes.
Overall, BioLife Solutions Inc should continue to monitor and potentially streamline its cash conversion cycle to enhance its operational efficiency and financial performance.
Peer comparison
Dec 31, 2023