Biomarin Pharmaceutical Inc (BMRN)
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 | 775.41 | 759.54 | 674.72 | 602.50 | 486.33 |
| Days of sales outstanding (DSO) | days | 84.73 | 97.42 | 81.40 | 74.36 | 89.76 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 860.14 | 856.96 | 756.11 | 676.86 | 576.09 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 775.41 + 84.73 – —
= 860.14
The cash conversion cycle of Biomarin Pharmaceutical Inc has shown an increasing trend over the years, from 576.09 days as of December 31, 2020, to 860.14 days as of December 31, 2024. This indicates that it is taking the company longer to convert its investments in inventory and receivables into cash.
The increase in the cash conversion cycle may suggest potential inefficiencies in managing inventory, collecting receivables, or paying off payable obligations. A longer cash conversion cycle can tie up cash flow and hinder the company's ability to meet its short-term obligations or take advantage of growth opportunities.
Analyzing the reasons behind this trend and implementing strategies to shorten the cash conversion cycle could help improve the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2024