Globus Medical (GMED)

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	564.73	935.00	432.19	425.51	413.79	404.34	391.58	380.78	361.61	359.00	356.34	378.68	384.62	412.09	423.06	406.87	398.14	385.38	372.34	320.52
Days of sales outstanding (DSO)	days	117.49	147.57	80.50	77.11	77.55	76.23	74.40	64.48	63.11	68.52	72.84	71.90	68.51	72.01	66.45	63.83	75.49	74.73	77.14	71.13
Number of days of payables	days	37.73	89.82	43.55	52.80	49.96	45.77	50.33	39.13	33.50	31.67	32.78	36.58	30.56	53.36	52.24	47.29	49.92	49.73	51.09	55.96
Cash conversion cycle	days	644.48	992.75	469.15	449.81	441.38	434.80	415.65	406.13	391.22	395.84	396.39	414.00	422.57	430.74	437.28	423.41	423.70	410.38	398.38	335.70

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 564.73 + 117.49 – 37.73
= 644.48

The cash conversion cycle of Globus Medical Inc has fluctuated over the past eight quarters, ranging from a low of 404.76 days in Q1 2022 to a high of 992.24 days in Q3 2023.

The company experienced significant improvements in efficiency from Q2 2022 to Q4 2022, with the cash conversion cycle decreasing consistently during this period. However, there was a notable increase in Q3 2023, which could indicate potential challenges in managing working capital during that quarter.

Overall, the trend of the cash conversion cycle for Globus Medical Inc shows some volatility, reflecting potential fluctuations in the company's cash management practices and operational efficiency. Further analysis and monitoring of this metric may be necessary to identify any underlying issues impacting the company's financial performance.