Lantheus Holdings Inc (LNTH)

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	46.35	49.98	51.41	52.89	39.82	36.88	35.63	30.94	36.64	38.60	41.79	47.02	53.98	55.98	54.04	55.56	65.02	72.30	70.93	61.53
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	46.35	49.98	51.41	52.89	39.82	36.88	35.63	30.94	36.64	38.60	41.79	47.02	53.98	55.98	54.04	55.56	65.02	72.30	70.93	61.53

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.35 + — – —
= 46.35

The cash conversion cycle of Lantheus Holdings Inc has shown a decreasing trend over the past few years. From a high of 72.30 days as of September 30, 2020, the company has managed to reduce its cash conversion cycle to 46.35 days as of December 31, 2024.

A lower cash conversion cycle indicates that the company is becoming more efficient in managing its working capital. This means that Lantheus Holdings Inc is taking less time to convert its investments in inventory into cash receipts from sales, leading to a more streamlined operating cycle.

The decreasing trend in the cash conversion cycle suggests that the company has been able to manage its cash flows more effectively, potentially through improved inventory management, faster collections from customers, or extended payment terms with suppliers.

Overall, the improving cash conversion cycle of Lantheus Holdings Inc reflects positively on its operational efficiency and working capital management, which are essential aspects of maintaining a healthy financial position.