Dynavax Technologies Corporation (DVAX)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 517.13 | 387.72 | 82.77 | 128.98 | 1,671.21 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 517.13 | 387.72 | 82.77 | 128.98 | 1,671.21 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 517.13 + — – —
= 517.13
The cash conversion cycle of Dynavax Technologies Corporation has shown significant fluctuations over the past five years.
As of December 31, 2020, the company's cash conversion cycle was 1,671.21 days, reflecting a lengthy period for the company to convert its investments in inventory and accounts receivable into cash. This may indicate inefficiencies in managing working capital and a potential strain on the company's liquidity.
By December 31, 2021, the cash conversion cycle had decreased significantly to 128.98 days, indicating an improvement in the company's ability to convert its resources into cash. This may suggest better inventory management and a more streamlined accounts receivable collection process.
The trend continued into 2022, with the cash conversion cycle further decreasing to 82.77 days. This continued improvement suggests that the company may have implemented more effective working capital management strategies, leading to enhanced cash flow efficiency.
However, by December 31, 2023, the cash conversion cycle increased to 387.72 days, indicating a potential reversal in the company's working capital management. This could be a concern as it may signal challenges in generating cash from its operating activities and could impact the company's overall financial health.
The upward trend continued into 2024, with the cash conversion cycle rising to 517.13 days. This further increase suggests that Dynavax Technologies Corporation may be facing difficulties in converting its investments into cash efficiently, potentially impacting its cash flow and liquidity position.
Overall, the fluctuations in Dynavax Technologies Corporation's cash conversion cycle highlight the importance of effective working capital management in optimizing cash flow and ensuring long-term financial sustainability.
Peer comparison
Dec 31, 2024