IDEXX Laboratories Inc (IDXX)

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	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	68.35	73.60	72.18	70.45
Days of sales outstanding (DSO)	days	47.30	47.91	50.08	50.34	48.67	44.88	47.74	47.26	44.02	45.82	47.89	50.64	47.32	50.94	49.57	46.81	43.95	44.85	45.59	45.58
Number of days of payables	days	27.45	28.56	27.94	31.08	29.52	29.47	33.99	32.52	31.97	24.48	27.07	27.06	23.96	23.90	25.46	25.47	25.30	27.13	24.79	26.08
Cash conversion cycle	days	114.21	119.26	124.68	122.50	117.66	110.39	102.58	95.89	86.11	94.33	91.06	93.60	90.81	99.34	103.12	93.97	87.01	91.32	92.98	89.95

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.36 + 47.30 – 27.45
= 114.21

The cash conversion cycle for Idexx Laboratories, Inc. has shown fluctuations over the past eight quarters. The trend indicates a general increase in the time it takes for the company to convert its investments in inventory and accounts receivable into cash.

In the most recent quarter, Q4 2023, the cash conversion cycle stands at 114.21 days, which is a slight improvement compared to the previous quarter. However, the overall trend has been increasing since Q1 2022, reaching a peak of 124.68 days in Q2 2023.

A longer cash conversion cycle suggests that Idexx Laboratories, Inc. is taking more time to generate cash from its operating activities, potentially indicating inefficiencies in managing inventory, collecting receivables, or paying suppliers. It is important for the company to closely monitor and manage its cash conversion cycle to ensure optimal liquidity and operational efficiency.