Boston Scientific Corp (BSX)

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	86.05	86.31	81.79	76.80	71.86	67.71	67.41	67.53	63.40	64.49	57.64	59.85	56.87	63.14	67.40	71.41	72.37	74.69	64.31	61.70
Days of sales outstanding (DSO)	days	58.20	72.98	75.27	75.78	77.92	56.42	59.86	59.21	55.83	54.55	56.32	60.91	58.50	59.82	54.32	59.62	68.18	65.33	64.04	61.32
Number of days of payables	days	32.63	33.35	32.68	32.52	33.18	30.41	28.17	27.07	31.27	27.11	27.77	26.16	21.59	19.39	18.14	26.54	24.84	24.42	25.92	25.02
Cash conversion cycle	days	111.61	125.94	124.38	120.06	116.60	93.72	99.11	99.67	87.96	91.92	86.19	94.60	93.77	103.57	103.58	104.49	115.70	115.59	102.43	98.00

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.05 + 58.20 – 32.63
= 111.61

The cash conversion cycle of Boston Scientific Corp. has shown a fluctuating trend over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 186.64 days, which is higher compared to the previous quarter's 183.71 days. This indicates that the company took longer to convert its investments in inventory and other resources into cash during this period.

Looking back, the cash conversion cycle has generally been increasing since Q1 2022, where it was at 156.64 days. This suggests potential inefficiencies in the company's working capital management, as it took longer to collect cash from sales and convert assets into cash. The peak in the cycle was recorded in Q4 2022 at 149.42 days, indicating a significant delay in cash conversion at that time.

Overall, continuous monitoring and optimization of the cash conversion cycle are crucial for Boston Scientific Corp. to ensure efficient operations and maximize cash flow. Identifying and addressing factors contributing to the elongation of the cycle can help improve the company's financial performance and liquidity position in the long run.