Exelixis Inc (EXEL)

Cash conversion cycle

		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	Mar 31, 2019
Days of inventory on hand (DOH)	days	10.28	15.27	18.32	19.94	23.47	19.70	25.22	22.83	22.07	23.76	23.28	24.54	25.95	25.92	21.03	22.29	18.55	19.93	27.38	23.62
Days of sales outstanding (DSO)	days	47.35	51.04	49.57	51.32	48.66	47.90	55.26	45.75	71.90	52.25	54.20	62.91	59.46	63.31	44.26	51.19	44.91	64.82	39.13	45.93
Number of days of payables	days	20.03	16.17	16.63	21.75	23.03	22.55	15.26	13.86	19.48	20.46	19.06	13.70	29.24	64.30	11.52	22.15	16.67	12.46	27.21	22.70
Cash conversion cycle	days	37.59	50.14	51.26	49.51	49.11	45.06	65.22	54.72	74.49	55.55	58.43	73.75	56.17	24.93	53.77	51.33	46.79	72.30	39.31	46.85

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.28 + 47.35 – 20.03
= 37.59

The cash conversion cycle of Exelixis Inc has shown some fluctuations over the past few quarters. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales to customers, and then back into cash, including the time taken to pay suppliers.

Based on the data provided in the table, the cash conversion cycle has ranged from a low of 24.93 days to a high of 74.49 days over the past several quarters. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and turn its assets into cash quickly. On the other hand, a higher cash conversion cycle suggests that the company may be facing challenges in managing its working capital effectively or may have inefficiencies in its operations.

It is important for Exelixis Inc to closely monitor its cash conversion cycle to ensure that it is optimizing its working capital and maintaining efficient operations. By identifying and addressing any issues that may be causing delays in cash conversion, the company can improve its overall financial performance and liquidity position.