Edwards Lifesciences Corp (EW)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 320.63 | 309.60 | 269.21 | 307.19 | 309.03 | 294.21 | 302.12 | 300.49 | 295.78 | 244.34 | 226.99 | 212.52 | 212.38 | 217.93 | 230.06 | 252.76 | 271.00 | 263.67 | 248.00 | 210.60 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 320.63 | 309.60 | 269.21 | 307.19 | 309.03 | 294.21 | 302.12 | 300.49 | 295.78 | 244.34 | 226.99 | 212.52 | 212.38 | 217.93 | 230.06 | 252.76 | 271.00 | 263.67 | 248.00 | 210.60 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 320.63 + — – —
= 320.63
The cash conversion cycle for Edwards Lifesciences Corp has displayed fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle indicates the time it takes for a company to convert its investments into cash flow, reflecting its operational efficiency and liquidity management.
The company's cash conversion cycle ranged from a low of 210.60 days on March 31, 2020, to a high of 320.63 days on December 31, 2024. A lower cash conversion cycle implies that the company is more efficient in managing its working capital, inventory, and receivables, thereby generating cash at a faster rate. Conversely, a higher cash conversion cycle suggests inefficiencies in managing these aspects, leading to a longer cycle to convert investments into cash.
The trend shows some level of fluctuation, with periods of decrease followed by increases in the cash conversion cycle. It is important for the company to closely monitor and manage its working capital components to optimize the cash conversion cycle and maintain healthy liquidity levels.
Overall, the variations in the cash conversion cycle of Edwards Lifesciences Corp over the observed period emphasize the importance of effective working capital management in sustaining operational efficiency and financial health.
Peer comparison
Dec 31, 2024
See also:
Edwards Lifesciences Corp Cash Conversion Cycle (Quarterly Data)