Integra LifeSciences Holdings (IART)

Cash conversion cycle

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	102.46	98.79	97.96	99.37	92.73	87.47	89.46	91.24	88.10	123.33	123.44	137.86	134.99	96.71	110.10	96.42	90.13	86.37	84.56	81.87
Days of sales outstanding (DSO)	days	63.68	62.83	63.21	61.40	63.88	59.63	57.01	56.56	55.09	53.04	55.76	59.51	62.49	60.16	48.82	61.11	68.05	70.05	74.58	71.29
Number of days of payables	days	24.28	25.23	27.58	31.90	29.17	22.70	19.42	24.58	17.16	22.47	24.99	25.85	23.77	15.79	17.89	27.68	32.25	26.87	30.57	28.69
Cash conversion cycle	days	141.86	136.39	133.58	128.86	127.45	124.40	127.06	123.22	126.03	153.90	154.22	171.53	173.71	141.08	141.02	129.85	125.93	129.55	128.57	124.48

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 102.46 + 63.68 – 24.28
= 141.86

The cash conversion cycle of Integra Lifesciences Holdings Corp has shown a slight fluctuation over the past eight quarters. The cycle measures the company's efficiency in managing its cash flow from the purchase of raw materials to the collection of accounts receivable.

From Q1 2022 to Q4 2023, there is a general trend of increase in the cash conversion cycle, indicating a longer period for the company to convert its input costs into cash receipts from sales. However, there are some quarters where the cycle slightly decreases, suggesting some improvements in working capital management.

Overall, the average cash conversion cycle for the period under review is approximately 210 days. A longer cash conversion cycle may indicate potential inefficiencies in managing inventory, accounts payable, and accounts receivable. It is essential for the company to closely monitor and manage its working capital components to ensure a healthy cash flow and operational efficiency.