3D Systems Corporation (DDD)

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	64.68	82.37	55.05	63.19	61.68
Days of sales outstanding (DSO)	days	76.15	64.56	40.27	76.07	64.16
Number of days of payables	days	21.15	32.17	34.00	24.47	27.67
Cash conversion cycle	days	119.68	114.76	61.32	114.80	98.16

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.68 + 76.15 – 21.15
= 119.68

The cash conversion cycle for 3D Systems Corporation has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle increased to 119.68 days from 114.76 days in 2022. This indicates that the company took longer to convert its investments in inventory into cash receipts from customers and then back into cash again.

Comparing 2023 to 2021, there is a significant increase in the cash conversion cycle from 61.32 days to 119.68 days. This suggests that 3D Systems Corporation may be facing challenges in managing its working capital efficiently, potentially due to issues such as slower inventory turnover or extended accounts receivable collection periods.

In 2020, the cash conversion cycle was also relatively high at 114.80 days, indicating a similar trend to 2023. However, it improved in 2022 before regressing in 2023.

The cash conversion cycle for 3D Systems Corporation in 2019 was 98.16 days, showing a shorter cycle compared to 2020 and 2023. This indicates that the company was more efficient in managing its working capital in 2019 compared to the subsequent years analyzed.

Overall, the fluctuations in the cash conversion cycle of 3D Systems Corporation reflect potential challenges in effectively managing the company's working capital and converting investments in inventory and accounts receivable into cash. It is important for the company to closely monitor and address the factors influencing the cash conversion cycle to improve its operational efficiency and financial performance.