Exelixis Inc (EXEL)
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 | 12.26 | 10.28 | 23.47 | 22.07 | 23.22 |
| Days of sales outstanding (DSO) | days | 44.67 | 47.35 | 48.66 | 71.90 | 59.46 |
| Number of days of payables | days | 20.92 | 20.03 | 23.03 | 19.48 | 26.17 |
| Cash conversion cycle | days | 36.02 | 37.59 | 49.11 | 74.49 | 56.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.26 + 44.67 – 20.92
= 36.02
The cash conversion cycle of Exelixis Inc has shown fluctuations over the years based on the provided data. As of December 31, 2020, the company's cash conversion cycle was 56.52 days, indicating the average number of days it took for the company to convert its investments in inventory and other resources into cash flows from sales.
By December 31, 2021, the cycle lengthened to 74.49 days, suggesting a delay in the conversion process compared to the previous year. However, Exelixis Inc managed to improve its cash conversion efficiency by December 31, 2022, with the cycle shortening to 49.11 days.
Further progress was seen by December 31, 2023, as the cash conversion cycle decreased to 37.59 days, indicating a more efficient management of working capital and faster conversion of investments into cash. By December 31, 2024, the cycle further improved to 36.02 days, demonstrating the company's continued efforts in optimizing its cash conversion process.
Overall, Exelixis Inc has shown varying levels of efficiency in managing its cash conversion cycle over the years, with fluctuations in the number of days it takes to convert its investments into cash. The company's ability to continuously improve this cycle indicates its focus on working capital management and operational efficiency.
Peer comparison
Dec 31, 2024