Fulgent Genetics Inc (FLGT)

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 16.98 17.21 14.02 12.97 11.39 9.17 9.66 7.77 6.20 10.56 17.91 17.67 20.67 39.05 49.27 58.66 67.02 155.46 40.77 36.77
Days of sales outstanding (DSO) days — — — — — — — — — — — — — — — — — — — —
Number of days of payables days — — — — — — — — — — — — — — — — — — — —
Cash conversion cycle days 16.98 17.21 14.02 12.97 11.39 9.17 9.66 7.77 6.20 10.56 17.91 17.67 20.67 39.05 49.27 58.66 67.02 155.46 40.77 36.77

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 16.98 + — – —
= 16.98

The cash conversion cycle of Fulgent Genetics Inc has shown fluctuations over the years. The company's cash conversion cycle, which measures the time taken to convert inventory and receivables into cash, was relatively stable between March 2020 and March 2021, ranging from 36.77 days to 58.66 days. However, there was a significant increase in the cycle in September 2020, reaching 155.46 days, which could indicate potential issues with managing inventory and receivables efficiently during that period.

Subsequently, the cash conversion cycle improved gradually, reaching a low of 6.20 days by December 2022, showing enhanced efficiency in converting assets into cash. This trend continued into the following years, with the cycle staying relatively low, indicating effective management of working capital.

Overall, the downward trend in the cash conversion cycle from 2021 to 2024 suggests that Fulgent Genetics improved its liquidity and operational efficiency. However, continuous monitoring is essential to sustain and optimize the cash conversion cycle for long-term financial health.