Boston Scientific Corp (BSX)

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	185.74	193.13	190.27	205.99	207.52	206.66	199.14	183.57	170.24	164.76	164.60	165.87	156.33	154.34	138.89	142.65	140.41	159.62	168.86	182.67
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	185.74	193.13	190.27	205.99	207.52	206.66	199.14	183.57	170.24	164.76	164.60	165.87	156.33	154.34	138.89	142.65	140.41	159.62	168.86	182.67

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 185.74 + — – —
= 185.74

The cash conversion cycle of Boston Scientific Corp has shown fluctuating trends over the reporting periods. The company's cash conversion cycle measures the time it takes to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2020, the cash conversion cycle decreased from 182.67 days to 140.41 days, indicating an improvement in the company's efficiency in managing its working capital. However, from March 31, 2021, to December 31, 2024, the cash conversion cycle increased steadily, reaching a peak of 207.52 days by the end of December 31, 2023, before decreasing slightly to 185.74 days by the end of December 31, 2024.

The increasing trend in the cash conversion cycle from 2021 to 2024 suggests potential challenges in managing the company's working capital efficiently, indicating possible delays in converting inventory to sales and collecting receivables. This trend may raise concerns about the company's liquidity and operational efficiency, as a longer cash conversion cycle can tie up funds in working capital for extended periods.

Boston Scientific Corp may need to focus on streamlining its inventory management, enhancing its collection processes, and optimizing its supplier payment strategies to improve its cash conversion cycle and strengthen its overall financial performance in the future.