CONMED Corporation (CNMD)

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	220.48	204.38	255.78	191.03	176.86
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	220.48	204.38	255.78	191.03	176.86

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 220.48 + — – —
= 220.48

The cash conversion cycle of CONMED Corporation has exhibited fluctuations over the past five years, indicating changes in its efficiency in managing its working capital.

As of December 31, 2020, the cash conversion cycle stood at 176.86 days, representing the time taken by CONMED to convert its investments in raw materials and other inputs into cash inflows from sales. This figure increased to 191.03 days by December 31, 2021, indicating a slight deterioration in the company's working capital management.

The following year, on December 31, 2022, the cash conversion cycle significantly extended to 255.78 days, pointing towards potential challenges in inventory turnover or collection of receivables. However, by December 31, 2023, the cycle decreased to 204.38 days, suggesting a positive trend in managing the conversion of working capital components.

On December 31, 2024, the cash conversion cycle slightly increased to 220.48 days, remaining higher than the level observed at the end of 2023. This implies that CONMED may still be working on optimizing its working capital processes to enhance its cash conversion efficiency.

Overall, CONMED Corporation has experienced fluctuations in its cash conversion cycle over the analyzed period, indicating varying degrees of effectiveness in managing its working capital components. Monitoring and potentially improving this metric further could contribute to enhancing the company's overall financial performance and liquidity position.