ICU Medical Inc (ICUI)
Cash conversion cycle
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 136.93 | 159.25 | 158.63 | 164.33 | 168.88 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 136.93 | 159.25 | 158.63 | 164.33 | 168.88 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 136.93 + — – —
= 136.93
The cash conversion cycle of ICU Medical Inc has shown fluctuations over the years, reflecting the company's ability to manage its cash flow efficiently. The cycle represents the time it takes for the company to convert its investments in inventory into cash receipts from customers.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a high of 196.99 days to a low of 128.44 days. A shorter cycle indicates that the company is able to convert its inventory into cash more quickly, which is generally favorable.
In the earlier periods, the cycle hovered around 140-150 days, suggesting some room for improvement in working capital management. However, in the latter periods, the cycle decreased significantly, reaching a low of 128.44 days by December 31, 2021, which indicates improved efficiency in managing working capital.
The increase seen in the cycle in the early quarters of 2022 could be attributed to various factors such as changes in inventory management or collection processes. However, it is positive to note that by the end of December 31, 2024, the cash conversion cycle had decreased to 136.93 days, showing the company's continued focus on enhancing cash flow efficiency.
Overall, fluctuations in the cash conversion cycle of ICU Medical Inc demonstrate the company's efforts to optimize working capital and efficiently manage its cash flow over the years, with a general trend towards improvement in cash conversion efficiency.
Peer comparison
Dec 31, 2024