Fulgent Genetics Inc (FLGT)

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 17.36 11.51 6.20 20.67 67.02
Days of sales outstanding (DSO) days — — — — —
Number of days of payables days — — — — —
Cash conversion cycle days 17.36 11.51 6.20 20.67 67.02

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 17.36 + — – —
= 17.36

The cash conversion cycle (CCC) of Fulgent Genetics Inc has shown a decreasing trend over the years, indicating improvements in the company's operational efficiency. As of December 31, 2020, the CCC stood at 67.02 days, which decreased significantly to 20.67 days by December 31, 2021. This downward trend continued with a further drop to 6.20 days by December 31, 2022, reflecting an efficient management of cash flow, inventory, and receivables.

However, there was a slight increase in the CCC to 11.51 days by December 31, 2023, followed by a modest increase to 17.36 days by December 31, 2024. Despite these slight upticks, the overall trend of the cash conversion cycle suggests that Fulgent Genetics Inc has been successful in optimizing its working capital management and converting its investments into cash relatively quickly. The company seems to be effective in balancing its cash inflows and outflows, which is favorable for its financial health and sustainability.