Glaukos Corp (GKOS)

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	56.93	61.69	60.54	56.36	48.72	49.54	50.64	52.96	51.51	47.36	39.20	35.43	33.31	28.67	25.75	22.77	21.84	26.27	28.28	39.11
Days of sales outstanding (DSO)	days	59.30	58.17	56.32	54.23	47.97	48.90	49.97	49.53	48.28	46.19	46.69	43.73	41.67	43.91	48.45	56.63	59.04	55.69	46.76	44.68
Number of days of payables	days	12.86	11.44	12.39	14.32	15.60	12.97	10.99	15.75	19.61	15.89	29.98	11.47	10.62	12.30	10.23	12.86	6.04	8.95	12.38	18.27
Cash conversion cycle	days	103.37	108.42	104.47	96.27	81.10	85.47	89.62	86.74	80.18	77.66	55.91	67.69	64.37	60.28	63.96	66.54	74.84	73.01	62.66	65.51

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.93 + 59.30 – 12.86
= 103.37

The cash conversion cycle (CCC) is a measure of how efficiently a company manages its working capital to generate sales revenue. It consists of three components: the days inventory outstanding (DIO), the days sales outstanding (DSO), and the days payable outstanding (DPO).

Analyzing the CCC data of Glaukos Corp from March 31, 2020, to December 31, 2024, reveals fluctuations in the efficiency of its working capital management over time. The CCC decreased from 65.51 days on March 31, 2020, to 55.91 days on June 30, 2022, indicating an improvement in the company's ability to convert its resources into cash.

However, from September 30, 2022, to June 30, 2024, there was a noticeable increase in the CCC, reaching a peak of 108.42 days on September 30, 2024. This upward trend suggests potential issues in the company's working capital efficiency, possibly due to delays in inventory turnover, collection of receivables, or payment of payables.

Overall, monitoring the CCC can help investors and stakeholders assess Glaukos Corp's liquidity and operational efficiency. Companies with a shorter CCC typically have better cash flow management and may be more resilient to economic downturns or operational challenges. In contrast, a lengthening CCC could indicate potential financial difficulties that may require further investigation.