Cytek Biosciences Inc (CTKB)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Days of inventory on hand (DOH) days 265.83 278.71
Days of sales outstanding (DSO) days 105.76 6,019.36 4,980.47
Number of days of payables days 13.24 27.81
Cash conversion cycle days 358.35 6,270.26 4,980.47

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 265.83 + 105.76 – 13.24
= 358.35

The cash conversion cycle of Cytek Biosciences Inc has shown significant improvement over the past three years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

In 2021, the company had a cash conversion cycle of 4,980.47 days, indicating that it took a substantial amount of time to convert its resources into cash. However, by the end of 2023, this cycle had significantly decreased to 358.35 days, reflecting a much more efficient operation.

The notable reduction in the cash conversion cycle suggests that Cytek Biosciences Inc has improved its inventory management, accounts receivable collection, and accounts payable management. This efficiency can help the company free up cash flow, reduce financing costs, and enhance overall financial performance.

Overall, the decreasing trend in the cash conversion cycle over the three-year period reflects positive operational improvements within Cytek Biosciences Inc, signaling enhanced efficiency in converting its resources into cash inflows.


Peer comparison

Dec 31, 2023