Boston Scientific Corp (BSX)
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 | 195.10 | 208.67 | 170.24 | 156.29 | 140.49 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 195.10 | 208.67 | 170.24 | 156.29 | 140.49 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 195.10 + — – —
= 195.10
The cash conversion cycle of Boston Scientific Corp has shown an upward trend over the past five years. In 2020, the company's cash conversion cycle was 140.49 days, which increased to 156.29 days by the end of 2021. Subsequently, the cycle continued to lengthen, reaching 170.24 days by the end of 2022. This trend accelerated further in 2023, with a notable increase to 208.67 days. However, in 2024, there was a slight improvement as the cash conversion cycle decreased to 195.10 days.
The increasing trend in the cash conversion cycle indicates that Boston Scientific Corp is taking longer to convert its investments in inventory back into cash. This may be a result of inventory management inefficiencies or challenges in collecting receivables, which could potentially lead to reduced liquidity and working capital constraints. It would be important for the company to closely monitor and address the factors contributing to this lengthening cash conversion cycle to ensure optimal cash flow management and operational efficiency.
Peer comparison
Dec 31, 2024