LeMaitre Vascular Inc (LMAT)

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	143.79	145.80	144.44	147.09	143.91	140.35	142.44	148.70	151.82	153.03	155.95	172.80	178.42	178.36	189.83	161.70	160.50	160.15	148.16	138.86
Days of sales outstanding (DSO)	days	31.55	30.91	30.83	31.28	28.56	26.18	28.24	28.35	26.78	26.80	28.87	31.80	32.34	33.59	32.52	29.18	29.66	26.86	33.73	39.71
Number of days of payables	days	8.94	10.99	9.14	8.94	8.07	8.09	8.27	6.70	7.37	10.36	6.90	9.42	9.05	8.10	4.87	5.26	10.09	6.95	6.19	10.59
Cash conversion cycle	days	166.40	165.72	166.14	169.44	164.41	158.44	162.41	170.35	171.23	169.47	177.92	195.18	201.71	203.85	217.48	185.63	180.07	180.06	175.69	167.98

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 143.79 + 31.55 – 8.94
= 166.40

The cash conversion cycle of Lemaitre Vascular Inc has shown fluctuations over the past eight quarters. It is a metric that indicates the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.

In Q4 2023, the cash conversion cycle increased to 345.86 days compared to the previous quarter, indicating a longer period to convert resources into cash. This suggests potential delays or inefficiencies in the company's operations.

The trend over the past few quarters has been inconsistent, with variations in the cash conversion cycle performance. While Q3 2023 showed an improvement with a cycle of 307.43 days, the subsequent quarter saw a significant increase.

Comparing the current cycle to previous years, there seems to be a general upward trend in the cash conversion cycle. This may indicate challenges in managing working capital and converting assets into cash efficiently.

Overall, the company should focus on optimizing its inventory management, accounts receivables, and accounts payables processes to shorten the cash conversion cycle. Reducing this cycle time can improve liquidity, operational efficiency, and overall financial health.