Lantheus Holdings Inc (LNTH)

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	45.51	39.82	36.64	53.98	65.02
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	45.51	39.82	36.64	53.98	65.02

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.51 + — – —
= 45.51

The cash conversion cycle of Lantheus Holdings Inc has shown a decreasing trend over the years, reflecting efficiency in managing its working capital.

As of December 31, 2020, the company's cash conversion cycle was 65.02 days, indicating that it took around 65 days to convert its investment in inventory and accounts receivable into cash.

By December 31, 2021, the cash conversion cycle had decreased to 53.98 days, suggesting improved efficiency in managing its working capital and converting sales into cash.

The trend continued with the cash conversion cycle further declining to 36.64 days by December 31, 2022, showcasing the company's ability to streamline its operations and accelerate cash flow.

However, there was a slight increase in the cash conversion cycle to 39.82 days by December 31, 2023, which may be attributed to changes in the company's operations or market conditions.

As of December 31, 2024, the cash conversion cycle stood at 45.51 days, still below the initial levels in 2020, indicating that Lantheus Holdings Inc continued to effectively manage its working capital despite the slight increase in days compared to the previous year.

Overall, the declining trend in the cash conversion cycle over the years demonstrates the company's efforts to optimize its working capital management and enhance its cash flow efficiency.