Hims Hers Health Inc (HIMS)
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 | 77.51 | 76.49 | 77.95 | 64.50 | 52.21 | 53.74 | 55.70 | 58.57 | 66.59 | 77.00 | 75.71 | 54.13 | 73.44 | 72.91 | 53.33 | 39.37 | 32.90 | 60.30 | 111.42 | 223.60 |
| Days of sales outstanding (DSO) | days | 1.51 | — | — | — | 2.80 | — | — | — | 2.70 | — | — | — | 5.50 | — | — | — | 2.70 | — | — | — |
| Number of days of payables | days | 109.70 | 117.51 | 109.65 | 94.98 | 100.10 | 102.64 | 99.52 | 106.43 | 99.94 | 113.61 | 104.26 | 106.57 | 106.38 | 108.07 | 125.95 | 115.19 | 74.90 | 0.30 | 0.39 | 2.70 |
| Cash conversion cycle | days | -30.68 | -41.02 | -31.71 | -30.48 | -45.09 | -48.90 | -43.82 | -47.86 | -30.65 | -36.61 | -28.55 | -52.44 | -27.44 | -35.16 | -72.62 | -75.82 | -39.30 | 59.99 | 111.02 | 220.90 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.51 + 1.51 – 109.70
= -30.68
The cash conversion cycle of Hims Hers Health Inc has shown a significant improvement over the analyzed period. Initially, the company had a cash conversion cycle of 220.90 days as of March 31, 2020, indicating a lengthy process of converting investments in inventory into cash.
However, the trend starts to improve drastically as the company managed to reduce this cycle to -39.30 days by December 31, 2020, implying a negative cycle which suggests efficient management of operating capital.
From March 31, 2021, onward, the company continued to maintain a negative cash conversion cycle, highlighting its ability to rapidly convert inventory into payments from customers. This efficiency is consistent over the subsequent periods until December 31, 2024, where the cash conversion cycle is -30.68 days.
Overall, Hims Hers Health Inc has effectively managed its working capital and improved its efficiency in converting inventory into cash, indicating a positive trend in the management of its operating cycle and liquidity position.
Peer comparison
Dec 31, 2024