Masimo Corporation (MASI)
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 | 131.92 | 136.32 | 124.09 | 105.01 | 116.52 | 148.43 | 188.38 | 181.95 | 170.61 | 173.22 | 178.83 | 188.35 | 196.72 | 200.31 | 163.34 | 135.41 | 137.02 | 132.19 | 120.20 | 115.73 |
| Days of sales outstanding (DSO) | days | 68.49 | 65.74 | 61.88 | — | 3.38 | — | — | — | 59.85 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 60.88 | 66.11 | 60.72 | 51.95 | 64.37 | 80.24 | 102.54 | 74.54 | 64.04 | 51.98 | 57.34 | 54.80 | 58.36 | 87.58 | 94.28 | 57.33 | 64.50 | 49.13 | 44.38 | 40.91 |
| Cash conversion cycle | days | 139.53 | 135.95 | 125.25 | 53.06 | 55.52 | 68.19 | 85.85 | 107.42 | 166.41 | 121.25 | 121.49 | 133.55 | 138.37 | 112.73 | 69.06 | 78.07 | 72.52 | 83.05 | 75.82 | 74.82 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 131.92 + 68.49 – 60.88
= 139.53
The cash conversion cycle of Masimo Corporation has shown fluctuating trends over the past few quarters. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has ranged from as low as 53.06 days to as high as 166.41 days over the last five years.
In the most recent quarter, the cash conversion cycle was 139.53 days, indicating that on average, it takes Masimo Corporation approximately 139.53 days to convert its investments in inventory and other resources into cash flows from sales. This suggests that the company may be facing challenges in efficiently managing its working capital and converting its sales into cash effectively.
The decreasing trend in the cash conversion cycle from the previous quarter to the most recent quarter may indicate improved efficiency in managing working capital, although the cycle still remains relatively high. It is important for Masimo Corporation to continue monitoring and optimizing its cash conversion cycle to ensure effective management of its working capital and liquidity.
Peer comparison
Dec 31, 2023