Edwards Lifesciences Corp (EW)
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 | 354.94 | 309.03 | 295.78 | 212.38 | 271.00 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 354.94 | 309.03 | 295.78 | 212.38 | 271.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 354.94 + — – —
= 354.94
The cash conversion cycle of Edwards Lifesciences Corp has shown some fluctuations over the past five years. In 2020, the cash conversion cycle was 271.00 days, indicating that it took the company a significant amount of time to convert its investments in inventory and other resources into cash from sales. Subsequently, in 2021, the cycle improved to 212.38 days, suggesting a more efficient management of working capital.
However, in 2022 and 2023, the cash conversion cycle increased to 295.78 days and 309.03 days, respectively, signaling potential issues with liquidity and operational efficiency. This could imply slower inventory turnover or extended collection periods from customers.
By 2024, the cash conversion cycle peaked at 354.94 days, which may raise concerns about the company's ability to efficiently manage its cash flow and working capital. A longer cash conversion cycle could strain the company's liquidity position and impact its ability to fund operations or investments.
Overall, the trend in Edwards Lifesciences Corp's cash conversion cycle suggests a need for the company to focus on improving working capital management practices to enhance operational efficiency and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2024