IDEXX Laboratories Inc (IDXX)

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	91.89	94.31	92.66	96.02	94.36	99.92	102.53	103.24	98.50	94.99	88.83	81.15	74.06	72.98	70.24	70.02	67.46	72.30	79.01	72.63
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	91.89	94.31	92.66	96.02	94.36	99.92	102.53	103.24	98.50	94.99	88.83	81.15	74.06	72.98	70.24	70.02	67.46	72.30	79.01	72.63

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.89 + — – —
= 91.89

IDEXX Laboratories Inc's cash conversion cycle measures the time it takes for the company to convert its investments in inventory into cash inflows from sales. The trend in IDEXX's cash conversion cycle from March 31, 2020, to December 31, 2024, shows fluctuations.

The company's cash conversion cycle ranged from a low of 67.46 days on December 31, 2020, to a high of 103.24 days on March 31, 2023. A lower cash conversion cycle indicates that the company is faster in converting its inventory to cash, which may be indicative of efficient operations and effective inventory management.

However, the trend from March 31, 2023, to December 31, 2024, shows a slight improvement in the cash conversion cycle, dropping from 103.24 days to 91.89 days. This suggests that IDEXX may have made efforts to streamline its inventory management processes or optimize its cash inflows.

Overall, monitoring the cash conversion cycle is crucial for IDEXX Laboratories Inc to assess its efficiency in managing working capital and optimize its operations to ensure a healthy cash flow position.