Catalent Inc (CTLT)

Cash conversion cycle

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Days of inventory on hand (DOH)	days	61.12	80.82	84.11	88.80	87.99	84.65	93.27	82.18	80.37	79.29	85.15	82.56	77.66	41.38	37.49	32.12	27.78	55.14	48.87	50.93
Days of sales outstanding (DSO)	days	76.73	77.24	75.08	71.74	85.79	85.18	70.67	75.22	79.89	72.33	70.92	72.62	92.39	51.62	50.18	47.18	58.37	88.78	91.07	89.89
Number of days of payables	days	38.44	41.06	44.17	40.94	48.02	44.83	41.85	42.55	48.20	47.03	44.93	48.18	53.11	28.67	29.01	27.53	27.52	51.25	47.66	43.48
Cash conversion cycle	days	99.41	116.99	115.02	119.59	125.77	125.00	122.10	114.85	112.06	104.59	111.14	106.99	116.95	64.33	58.67	51.77	58.63	92.68	92.29	97.34

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 61.12 + 76.73 – 38.44
= 99.41

The cash conversion cycle of Catalent Inc has shown fluctuations over the past 20 quarters. The trend indicates that the company's ability to convert its resources into cash has varied. In the most recent quarter, the cash conversion cycle was 99.41 days, representing a decrease from the previous quarter. This suggests that the company has improved its efficiency in managing its cash flow and converting its assets into cash.

Looking further back, the cash conversion cycle peaked at 125.77 days in the second quarter of 2023, indicating a longer period required to convert resources into cash. However, there has been a general downward trend since then, with occasional fluctuations.

Overall, the company has experienced some variability in its cash conversion cycle over the past few years, implying fluctuations in its working capital management practices, inventory management, and accounts receivable and payable processes. It is essential for Catalent Inc to continue monitoring and optimizing its cash conversion cycle to ensure efficient use of its resources and maximize cash flow.