Integra LifeSciences Holdings (IART)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	98.12	88.69	84.26	88.82	89.73
Days of sales outstanding (DSO)	days	63.68	63.83	55.16	63.39	68.75
Number of days of payables	days	23.25	27.90	16.42	15.64	32.11
Cash conversion cycle	days	138.55	124.62	123.01	136.56	126.38

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 98.12 + 63.68 – 23.25
= 138.55

Integra Lifesciences Holdings Corp's cash conversion cycle has exhibited fluctuations over the past five years. In particular, the cycle increased from 197.41 days in 2019 to 239.07 days in 2020, before decreasing to 210.89 days in 2021. Subsequently, there was a further decline to 199.99 days in 2022, but then a slight increase to 226.60 days in 2023.

The company's cash conversion cycle reflects the time it takes to convert its investments in raw materials into cash inflows from sales. A longer cycle may indicate inefficiencies in the company's operations and management of working capital. Conversely, a shorter cycle suggests more effective management of inventories, receivables, and payables.

It is important for Integra Lifesciences Holdings Corp to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources and maintain liquidity. Further analysis of the underlying components contributing to the cash conversion cycle, such as inventory turnover, accounts receivable collection period, and accounts payable period, would provide insights into areas for improvement in the company's working capital management.