Biomarin Pharmaceutical Inc (BMRN)
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 | 775.41 | 742.72 | 832.16 | 799.82 | 763.05 | 722.52 | 698.64 | 667.91 | 674.72 | 643.53 | 631.98 | 614.19 | 602.50 | 573.56 | 461.62 | 488.84 | 486.33 | 517.80 | 675.07 | 674.85 |
| Days of sales outstanding (DSO) | days | 85.19 | 103.89 | 98.42 | 95.20 | 97.47 | 92.40 | 101.95 | 102.79 | 81.76 | 76.60 | 89.45 | 83.89 | 74.58 | 74.80 | 81.89 | 79.64 | 89.78 | 82.46 | 76.73 | 81.61 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 860.59 | 846.61 | 930.58 | 895.02 | 860.52 | 814.92 | 800.59 | 770.70 | 756.48 | 720.13 | 721.42 | 698.08 | 677.08 | 648.37 | 543.51 | 568.48 | 576.11 | 600.26 | 751.80 | 756.46 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 775.41 + 85.19 – —
= 860.59
The cash conversion cycle of Biomarin Pharmaceutical Inc has shown some fluctuations over the past years. The cycle measures the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 2020 to December 2020, the cash conversion cycle decreased steadily from 756.46 days to 576.11 days, indicating an improvement in the company's ability to manage its working capital effectively. However, from March 2021 to June 2022, the cycle increased gradually, reaching a peak of 930.58 days by June 2024.
The increasing trend in the cash conversion cycle from March 2021 to June 2024 suggests that Biomarin Pharmaceutical Inc may be facing challenges in efficiently managing its inventory, receivables, and payables. A longer cash conversion cycle can tie up funds in working capital, potentially leading to liquidity constraints and hindering the company's ability to finance its operations and growth.
It would be important for Biomarin Pharmaceutical Inc to address the factors contributing to the lengthening of its cash conversion cycle to optimize its working capital management and enhance its overall financial health. This could involve streamlining inventory management, improving receivables collection processes, and negotiating favorable payment terms with suppliers.
Peer comparison
Dec 31, 2024