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.