Lantheus Holdings Inc (LNTH)

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	22.61	20.98	20.31	17.19	20.84	20.91	21.34	22.70	25.92	29.57	29.97	32.87	38.14	42.53	41.30	36.24	36.93	61.50	67.69	67.86
Days of sales outstanding (DSO)	days	81.30	79.68	84.27	87.05	84.02	90.57	103.78	117.56	78.00	61.30	54.62	64.88	59.79	54.80	52.60	48.31	47.76	43.29	48.34	47.40
Number of days of payables	days	14.55	13.78	15.23	12.56	12.08	18.11	13.29	14.84	15.34	17.87	20.29	20.68	17.37	27.21	19.05	22.32	23.55	33.15	35.81	32.45
Cash conversion cycle	days	89.36	86.88	89.34	91.68	92.78	93.37	111.83	125.43	88.58	73.01	64.30	77.07	80.55	70.12	74.85	62.23	61.14	71.64	80.21	82.81

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 22.61 + 81.30 – 14.55
= 89.36

The cash conversion cycle of Lantheus Holdings Inc has shown fluctuations over the past eight quarters. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.

In Q1 2022, the cash conversion cycle was notably high at 132.40 days before showing improvement in Q2 and Q3 2022, although still remaining above 90 days. However, in Q4 2022, there was a significant increase to 98.70 days. This trend continued into Q1 and Q2 2023, with the cash conversion cycle remaining above 90 days.

During Q3 2023, the company managed to slightly reduce the cash conversion cycle to 91.14 days, showing some improvement from the previous quarter. In Q4 2023, the cash conversion cycle slightly increased to 94.25 days, still indicating a relatively long process to convert investments into cash flow.

Overall, Lantheus Holdings Inc should focus on optimizing its working capital management to reduce the cash conversion cycle further, which would help enhance liquidity and efficiency in converting investments into cash. Tracking and analyzing these fluctuations in the cash conversion cycle can provide insights into the company's operational efficiency and effectiveness in managing its resources.