Halozyme Therapeutics Inc (HALO)
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 | 265.61 | 233.77 | 276.13 | 302.62 | 242.12 | 258.29 | 276.67 | 247.52 | 262.34 | 317.38 | 395.70 | 220.34 | 241.69 | 237.31 | 292.46 | 381.64 | 511.28 | 623.39 | 348.56 | 324.09 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 265.61 | 233.77 | 276.13 | 302.62 | 242.12 | 258.29 | 276.67 | 247.52 | 262.34 | 317.38 | 395.70 | 220.34 | 241.69 | 237.31 | 292.46 | 381.64 | 511.28 | 623.39 | 348.56 | 324.09 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 265.61 + — – —
= 265.61
The cash conversion cycle of Halozyme Therapeutics Inc has fluctuated over the past few years, indicating varying efficiency in managing its working capital. The cycle measures how long it takes for the company to convert its investments in inventory and accounts receivable into cash flows from sales.
From March 31, 2020, to December 31, 2020, the cash conversion cycle increased significantly to 623.39 days, reflecting potential challenges in efficiently converting investments to cash. However, in the following quarters up to March 31, 2023, the company managed to reduce the cycle duration, indicating improved working capital management.
The cash conversion cycle hit the lowest point of 220.34 days on March 31, 2022, signifying efficient management of working capital during that period. However, it started to increase again in the subsequent quarters, reaching 265.61 days on December 31, 2024.
Overall, analyzing the cash conversion cycle of Halozyme Therapeutics Inc reveals fluctuations in working capital efficiencies over time, highlighting the company's ability to manage its liquidity, inventory, and receivables effectively. Efforts to optimize the cash conversion cycle can help enhance the company's financial performance and sustainability in the long run.
Peer comparison
Dec 31, 2024