Hims Hers Health Inc (HIMS)
Cash conversion cycle
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | — | — | — | 2.80 | — | — | — | 2.70 | — | — | — | 5.50 | — | — | — | 2.70 | — | — | — | |
| Number of days of payables | days | 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 | -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 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 76.49 + — – 117.51
= -41.02
The cash conversion cycle of Hims Hers Health Inc has been mainly negative in recent quarters, indicating efficient management of its operating cycle. The company has been able to convert its resources into cash quickly.
The trend shows fluctuations, with the cycle ranging from -31.71 days to -48.90 days in the past year, implying variability in the company's ability to manage its cash flows efficiently.
The most recent data point, at -41.02 days as of September 30, 2024, suggests that the company on average takes around 41 days to convert its investments in inventory and other resources into cash from sales and accounts receivable.
Overall, a negative cash conversion cycle is favorable as it means the company is receiving cash from customers before it needs to pay its suppliers, resulting in improved liquidity and potentially decreased reliance on external financing.