ICU Medical Inc (ICUI)

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	170.42	184.10	182.78	172.29	160.56	163.93	178.98	196.99	128.44	131.02	135.22	135.61	142.00	145.03	148.26	141.13	155.15	157.08	150.10	146.32
Days of sales outstanding (DSO)	days	26.10	26.26	25.81	22.08	35.49	38.04	44.30	48.05	29.36	32.68	34.48	34.86	35.64	47.44	57.52	57.23	58.29	59.50	64.13	63.94
Number of days of payables	days	36.04	36.18	39.39	42.94	49.81	53.76	61.97	73.82	35.90	27.86	31.49	33.01	32.40	36.50	46.45	39.11	59.10	57.29	59.68	60.73
Cash conversion cycle	days	160.48	174.17	169.21	151.43	146.25	148.21	161.31	171.21	121.90	135.83	138.20	137.46	145.23	155.96	159.33	159.25	154.33	159.29	154.55	149.53

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 170.42 + 26.10 – 36.04
= 160.48

The cash conversion cycle for ICU Medical, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 160.93 days, which decreased from the previous quarter Q3 2023 when it was 174.56 days. This reduction indicates that the company took less time to convert its investments in inventory into cash during this period.

Comparing the current cycle to the same quarter in the previous year, there has been an improvement as well. In Q4 2022, the cash conversion cycle was 146.82 days, suggesting that ICU Medical, Inc. was more efficient in managing its working capital in the latest reported quarter.

Despite these fluctuations, it is important for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal working capital management. A shorter cash conversion cycle typically indicates that the company is efficiently managing its operations, inventory, and accounts receivables, which can lead to improved cash flow and profitability.