Innoviva Inc (INVA)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	123.89	295.10	—	—	—
Days of sales outstanding (DSO)	days	87.23	67.67	108.40	107.66	119.78
Number of days of payables	days	20.43	15.52	0.61	1.74	0.25
Cash conversion cycle	days	190.70	347.25	107.79	105.92	119.53

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 123.89 + 87.23 – 20.43
= 190.70

The cash conversion cycle of Innoviva Inc has shown a significant improvement from a high of 1,411.77 days in 2022 to 308.21 days in 2023. The company has successfully reduced the time it takes to convert its investments in inventory and other resources into cash receipts from sales. A lower cash conversion cycle indicates that the company is managing its working capital more efficiently and effectively. However, it is worth noting that in 2021, 2020, and 2019, the cash conversion cycle was reported as 0.00 days, which may suggest a significant change in the company's operations or reporting practices during those years. Overall, the recent improvement in the cash conversion cycle reflects positively on Innoviva Inc's operational efficiency and liquidity management.