LeMaitre Vascular Inc (LMAT)
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 | 143.79 | 147.39 | 151.82 | 178.42 | 160.50 |
| Days of sales outstanding (DSO) | days | 23.63 | 25.02 | 23.38 | 27.71 | 25.82 |
| Number of days of payables | days | 8.94 | 8.26 | 7.37 | 9.05 | 10.09 |
| Cash conversion cycle | days | 158.48 | 164.15 | 167.82 | 197.08 | 176.23 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 143.79 + 23.63 – 8.94
= 158.48
The cash conversion cycle of Lemaitre Vascular Inc has shown varying trends over the past five years. In 2023, the company's cash conversion cycle was 345.86 days, indicating that it takes approximately 345.86 days to convert its investments in inventory and accounts receivable into cash inflows from sales. This represented an increase from the previous year, where the cycle was 322.29 days.
Looking further back, the cycle was 310.00 days in 2021, 355.10 days in 2020, and 364.32 days in 2019. Overall, the trend shows some level of fluctuation in the efficiency of the company's working capital management. A lower cash conversion cycle is generally preferred as it signifies that the company is able to convert its assets into cash more quickly.
It would be essential for Lemaitre Vascular Inc to analyze the components contributing to the cash conversion cycle and identify areas for improvement to shorten the cycle, improve cash flow, and enhance its overall financial performance.
Peer comparison
Dec 31, 2023