CONMED Corporation (CNMD)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 204.38 | 255.78 | 191.03 | 176.86 | 139.61 |
| Days of sales outstanding (DSO) | days | 71.04 | 66.80 | 66.41 | 74.97 | 72.27 |
| Number of days of payables | days | 56.64 | 56.49 | 47.99 | 48.38 | 47.47 |
| Cash conversion cycle | days | 218.78 | 266.09 | 209.45 | 203.45 | 164.41 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 204.38 + 71.04 – 56.64
= 218.78
Conmed Corp.'s cash conversion cycle has fluctuated over the past five years. The company's cash conversion cycle was longest in December 2022 at 266.09 days, indicating that it took longer for Conmed to convert its investments in inventory and accounts receivable into cash during that period. However, in December 2019, the company managed its cash conversion cycle most efficiently with only 164.41 days required to complete the cycle.
Overall, there seems to be some variability in Conmed Corp.'s management of its working capital over the years, as evidenced by the fluctuations in the cash conversion cycle. It is important for the company to closely monitor and manage its inventory levels and accounts receivable to optimize its cash conversion cycle and improve its overall liquidity position.
Peer comparison
Dec 31, 2023