Integra LifeSciences Holdings (IART)

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	96.70	98.12	88.69	84.26	88.82
Days of sales outstanding (DSO)	days	61.79	63.68	63.83	55.16	63.39
Number of days of payables	days	18.59	23.25	27.90	16.42	15.64
Cash conversion cycle	days	139.90	138.55	124.62	123.01	136.56

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.70 + 61.79 – 18.59
= 139.90

The cash conversion cycle of Integra LifeSciences Holdings has shown some fluctuations over the past five years. On December 31, 2020, the company's cash conversion cycle was 136.56 days, indicating a relatively long cycle. Subsequently, there was an improvement as of December 31, 2021, where the cycle decreased to 123.01 days, suggesting a more efficient management of cash, inventory, and receivables.

However, in the following years, the cash conversion cycle slightly increased, reaching 124.62 days as of December 31, 2022. This slight increase might indicate a potential slowdown in the conversion of inventory and receivables into cash.

The cycle then increased notably to 138.55 days by December 31, 2023, and further to 139.90 days by December 31, 2024. These higher numbers suggest a possible delay in the conversion of company resources into cash, which could impact liquidity and working capital management.

Overall, monitoring the trend of Integra LifeSciences Holdings' cash conversion cycle is crucial for assessing the company's operational efficiency and financial health. The management should focus on optimizing inventory turnover, timely collection of receivables, and efficient cash management to improve working capital efficiency and cash flow dynamics.