Corcept Therapeutics Incorporated (CORT)

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	14.76	14.07	14.26	16.16	18.70
Days of sales outstanding (DSO)	days	32.40	29.84	28.95	28.36	23.73
Number of days of payables	days	33.21	27.63	19.75	34.73	25.99
Cash conversion cycle	days	13.95	16.29	23.46	9.79	16.45

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.76 + 32.40 – 33.21
= 13.95

The cash conversion cycle (CCC) of Corcept Therapeutics Inc has displayed fluctuations over the past five years. Starting from a relatively stable period of -116.39 days in 2019, the CCC improved significantly to -105.15 days in 2021. However, there was a substantial increase in the CCC to -342.03 days in 2020 before another noteworthy improvement to -370.07 days in 2022. The most recent data for 2023 indicates a further reduction in the CCC to -513.26 days.

Overall, Corcept Therapeutics Inc has shown a pattern of negative CCC values, suggesting efficient management of its working capital and quick conversion of inventory into cash. However, the fluctuating nature of the CCC indicates changing efficiency in managing its cash flows, possibly due to variations in inventory turnover, accounts receivable collection, and accounts payable payment periods. Further analysis may be required to understand the specific drivers behind these trends and assess the company's liquidity and operational efficiency.