Hims Hers Health Inc (HIMS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 77.51 | 52.21 | 66.59 | 73.44 | 32.90 |
| Days of sales outstanding (DSO) | days | 1.51 | 2.80 | 2.70 | 5.50 | 2.70 |
| Number of days of payables | days | 109.70 | 100.10 | 99.94 | 106.38 | 74.90 |
| Cash conversion cycle | days | -30.68 | -45.09 | -30.65 | -27.44 | -39.30 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.51 + 1.51 – 109.70
= -30.68
Hims Hers Health Inc has shown a consistent improvement in its cash conversion cycle over the past years. The company's cash conversion cycle decreased from -39.30 days in December 2020 to -30.68 days in December 2024, indicating that the company is managing its cash flow efficiently. A negative cash conversion cycle implies that the company is able to convert its inventory into cash and collect receivables before paying its suppliers, which can be a positive sign of strong working capital management. However, it's important to monitor this metric closely to ensure that the company maintains a healthy balance between liquidity and operational efficiency.
Peer comparison
Dec 31, 2024