Cytokinetics Inc (CYTK)
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 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 62.19 | 0.74 | 350.34 | 40.47 | 93.08 |
| Number of days of payables | days | 45.22 | 52.52 | 77.27 | 55.63 | 75.19 |
| Cash conversion cycle | days | 16.97 | -51.78 | 273.06 | -15.16 | 17.89 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 62.19 – 45.22
= 16.97
The cash conversion cycle of Cytokinetics Inc has shown significant fluctuations over the past five years. In 2023, the company's cash conversion cycle stands at 62.19 days, representing a substantial increase from the previous year. This indicates that the company is taking longer to convert its invested resources into cash.
In 2022, the cash conversion cycle was only 0.57 days, suggesting that the company efficiently managed its inventory, accounts receivable, and accounts payable during that period. However, this was an exceptional performance compared to the other years.
In 2021, the cash conversion cycle spiked to 268.56 days, indicating a significant delay in converting resources into cash. This could be attributed to issues like slower collections from customers, extended inventory holding periods, or delayed payments to suppliers.
In 2020, the cash conversion cycle improved to 28.90 days, indicating a more efficient cash conversion process compared to the previous year. However, it was still higher than the 2019 figure of 70.14 days.
Overall, Cytokinetics Inc's cash conversion cycle has been volatile, with fluctuations across the years. It is important for the company to closely monitor and manage its working capital components to optimize its cash conversion cycle and improve operational efficiency.
Peer comparison
Dec 31, 2023