Cytek Biosciences Inc (CTKB)

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
Days of inventory on hand (DOH)	days	265.83	315.51	341.97	394.99	278.71	301.08	278.95	254.85
Days of sales outstanding (DSO)	days	105.76	110.43	103.15	94.73	108.73	93.28	90.18	79.71
Number of days of payables	days	13.24	22.23	16.03	30.01	27.81	34.40	41.52	40.06
Cash conversion cycle	days	358.35	403.71	429.09	459.72	359.63	359.97	327.61	294.49

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 some fluctuations over the past few quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally preferred as it indicates efficient management of working capital.

In the most recent quarter, ending December 31, 2023, Cytek Biosciences Inc had a cash conversion cycle of 358.35 days, which was an improvement from the previous quarter's 403.71 days. This suggests that the company was able to manage its working capital more effectively during this period.

Looking back over the past year, there was a peak in the cash conversion cycle in the first quarter of 2023 at 459.72 days, which may have been a concerning sign of potential liquidity issues or inefficiencies in inventory management. However, the cycle gradually improved in the following quarters, reaching a low of 294.49 days in the first quarter of 2022.

Overall, Cytek Biosciences Inc should continue to monitor its cash conversion cycle to ensure that it maintains an efficient level of working capital management and liquidity. fluctuations in the cycle may indicate changes in the company's operations or market conditions that require further analysis and attention.