Glaukos Corp (GKOS)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	46.87	47.75	33.83	21.73	70.14
Days of sales outstanding (DSO)	days	48.30	49.33	43.85	62.18	59.98
Number of days of payables	days	15.00	18.18	10.78	6.01	9.52
Cash conversion cycle	days	80.16	78.90	66.90	77.90	120.60

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.87 + 48.30 – 15.00
= 80.16

The cash conversion cycle of Glaukos Corporation has shown fluctuations over the past five years. In 2019, the company had an exceptionally long cash conversion cycle of 407.23 days, indicating that it took a significant amount of time to convert resources invested in inventory and accounts receivable back into cash.

However, there was a notable improvement in 2020, with the cash conversion cycle decreasing to 104.02 days. This suggests that the company became more efficient in managing its working capital and converting its inventories and receivables into cash.

Subsequently, in 2021, the cash conversion cycle further reduced to 127.40 days, indicating continued improvement in working capital management. The trend continued in 2022, with a further decrease to 170.57 days.

In 2023, the cash conversion cycle increased slightly to 184.08 days, potentially indicating some challenges in the company's working capital management or a change in its operating cycle.

Overall, the trend suggests that Glaukos Corporation has made progress in optimizing its cash conversion cycle over the years, but there may be opportunities for further improvement to enhance efficiency in converting its resources into cash.