Glaukos Corp (GKOS)

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	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	71.81	25.94	30.88	31.53
Days of sales outstanding (DSO)	days	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	59.27	39.52	38.23	39.04
Number of days of payables	days	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	9.75	7.09	11.11	13.32
Cash conversion cycle	days	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	121.33	58.37	58.00	57.25

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 48.72 + 47.97 – 15.60
= 81.10

The cash conversion cycle of Glaukos Corporation has shown fluctuations over the past eight quarters. The trend indicates that the company's cash conversion cycle has been increasing in recent quarters, reaching a peak of 204.28 days in Q2 2023. This suggests that the company is taking longer to convert its investments in inventory into cash receipts from sales.

The highest cash conversion cycle was observed in Q2 2023, followed by Q3 2023 and Q1 2023. This trend of an increasing cash conversion cycle could indicate potential issues with inventory management or delays in collecting accounts receivable, leading to a longer operating cycle for the company.

In contrast, Q2 and Q3 of 2022 showed significantly lower cash conversion cycles, which may suggest that the company was more efficient in managing its working capital during that period.

Overall, it is important for Glaukos Corporation to closely monitor and manage its cash conversion cycle to ensure efficient use of its resources and timely conversion of inventory and receivables into cash to support its operations and financial health.