3D Systems Corporation (DDD)

Cash conversion cycle

		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	Jun 30, 2019
Days of inventory on hand (DOH)	days	64.15	65.88	100.57	97.31	89.91	83.79	77.17	63.95	61.20	56.13	58.24	63.93	71.50	74.92	73.35	76.76	66.35	63.25	68.16	73.46
Days of sales outstanding (DSO)	days	76.70	76.20	77.21	70.70	66.73	64.55	66.19	67.61	65.13	59.48	48.48	49.31	59.16	75.22	65.98	62.97	64.93	63.50	62.43	63.64
Number of days of payables	days	17.80	21.54	30.31	36.78	31.37	32.72	32.73	37.54	34.53	34.66	29.30	29.79	29.11	29.01	24.09	32.02	32.73	28.38	29.45	32.47
Cash conversion cycle	days	123.05	120.54	147.47	131.23	125.27	115.62	110.63	94.02	91.80	80.94	77.41	83.45	101.54	121.13	115.24	107.71	98.54	98.37	101.14	104.63

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.15 + 76.70 – 17.80
= 123.05

The cash conversion cycle for 3D Systems Corporation has shown fluctuation over the past several quarters. The trend indicates that the company's ability to convert its investments in inventory and accounts receivable into cash has varied.

The cash conversion cycle reached its peak at 147.47 days in September 2023, reflecting a longer period required to convert inventory and receivables into cash. This was followed by a decrease to 80.94 days in June 2022, indicating a more efficient conversion process. Subsequently, the cycle increased to 123.05 days in March 2024, suggesting a slowdown in cash conversion efficiency.

Overall, the company's cash conversion cycle has exhibited variability, possibly influenced by factors such as inventory management, sales on credit terms, and collection practices. It would be prudent for management to closely monitor and analyze the components of the cash conversion cycle to identify opportunities for improvement and maintain healthy liquidity levels.