Krystal Biotech Inc (KRYS)
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 | 85.11 | 64.84 | 44.64 | 41.17 | 26.41 | 20.19 | 4.38 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 130.27 | 143.32 | 218.43 | 163.38 | 263.86 | 310.65 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 16.00 | 19.47 | 19.89 | 19.99 | 15.62 | 16.60 | 17.71 | 17.94 | 19.17 | 32.05 | 60.98 | 63.51 | 78.72 | 55.22 | 17.45 | 33.70 | 55.96 | 77.69 | 65.05 | 31.33 |
| Cash conversion cycle | days | 199.37 | 188.69 | 243.18 | 184.56 | 274.65 | 314.24 | -13.33 | -17.94 | -19.17 | -32.05 | -60.98 | -63.51 | -78.72 | -55.22 | -17.45 | -33.70 | -55.96 | -77.69 | -65.05 | -31.33 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.11 + 130.27 – 16.00
= 199.37
The cash conversion cycle for Krystal Biotech Inc has fluctuated over time, starting with negative values indicating efficient management of cash, inventory, and receivables. However, the cycle turned positive in the later periods of the analysis, particularly in the third and fourth quarters of 2023 and continuing into the first two quarters of 2024.
This change suggests that there may have been delays in collecting receivables or managing inventory effectively during this period. A rising cash conversion cycle can indicate potential liquidity issues or inefficiencies in working capital management, which may need closer attention from management to ensure continued financial health and operational efficiency.
It is crucial for Krystal Biotech to monitor and address the factors contributing to the prolonged cash conversion cycle to maintain sustainable cash flows and operational effectiveness. This may involve improving inventory management, streamlining accounts receivable processes, and enhancing overall working capital management practices to better navigate the financial challenges ahead.
Peer comparison
Dec 31, 2024