Innoviva Inc (INVA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 336.35 | 301.00 | 1,479.19 | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 336.35 | 301.00 | 1,479.19 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 336.35 + — – —
= 336.35
The cash conversion cycle of Innoviva Inc has shown fluctuations over the years. As of December 31, 2020, and December 31, 2021, the company had an efficient cash conversion cycle of 0.00 days, indicating that it effectively managed its cash flow, inventory, and receivables.
However, there was a significant increase in the cash conversion cycle to 1,479.19 days as of December 31, 2022. This substantial increase suggests a potential issue with managing working capital, as the company took a much longer time to convert its investments in inventory and receivables into cash during this period.
The following years, December 31, 2023, and December 31, 2024, saw improvements in the cash conversion cycle, with figures of 301.00 days and 336.35 days, respectively. Although the cycle remained elevated compared to the earlier years, the decreasing trend indicates that Innoviva Inc made progress in shortening the time it takes to convert its resources into cash.
Overall, monitoring and managing the cash conversion cycle is crucial for Innoviva Inc to ensure efficient cash flow management, optimize working capital, and enhance overall financial performance.
Peer comparison
Dec 31, 2024