Fulgent Genetics Inc (FLGT)
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 | 11.51 | 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 | 7.17 | 6.73 | 12.35 | 14.17 |
| Days of sales outstanding (DSO) | days | 66.20 | 64.22 | 42.41 | 44.38 | 42.80 | 47.67 | 53.12 | 61.93 | 51.60 | 43.21 | 60.19 | 102.18 | 174.55 | 267.68 | 116.02 | 66.94 | 73.73 | 65.12 | 81.11 | 75.75 |
| Number of days of payables | days | 30.34 | 29.64 | 36.00 | 36.35 | 33.44 | 20.37 | 55.65 | 39.47 | 34.71 | 44.24 | 28.63 | 39.83 | 107.65 | 163.58 | 68.79 | 68.58 | 40.91 | 59.26 | 35.83 | 48.79 |
| Cash conversion cycle | days | 47.36 | 43.74 | 16.08 | 15.80 | 15.56 | 37.86 | 15.38 | 40.14 | 37.56 | 38.02 | 80.83 | 121.01 | 133.92 | 259.56 | 88.00 | 35.14 | 39.99 | 12.58 | 57.63 | 41.14 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 11.51 + 66.20 – 30.34
= 47.36
The cash conversion cycle of Fulgent Genetics Inc has shown fluctuations over the past eight quarters, ranging from a low of 16.44 days in Q2 2022 to a high of 49.14 days in Q3 2023.
In general, a lower cash conversion cycle indicates that the company is able to efficiently convert its investments in inventory and accounts receivable into cash. Conversely, a higher cash conversion cycle may suggest inefficiencies in managing working capital, leading to longer periods between cash outflows for inventory and cash inflows from sales.
The trend in Fulgent Genetics Inc's cash conversion cycle indicates variability in its working capital management efficiency over the quarters. The company experienced a significant increase in the cash conversion cycle in Q3 2023 compared to the previous quarters, which may be a cause for concern as it suggests delays in collecting cash from customers or difficulties in managing inventory levels.
It is important for the company to closely monitor its cash conversion cycle and identify areas for improvement to ensure optimal utilization of working capital and maintain healthy cash flow operations.
Peer comparison
Dec 31, 2023