Mednax Inc (MD)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 19.33 | — | — | — | — |
| Days of sales outstanding (DSO) | days | 50.90 | 57.76 | 63.36 | 54.39 | 53.65 |
| Number of days of payables | days | 49.44 | 43.86 | 45.58 | 66.04 | 21.58 |
| Cash conversion cycle | days | 20.80 | 13.90 | 17.78 | -11.65 | 32.07 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.33 + 50.90 – 49.44
= 20.80
The cash conversion cycle of Pediatrix Medical Group Inc has shown fluctuations over the past five years. In 2023, the cycle decreased to 51.21 days from 54.93 days in 2022. This improvement indicates that the company was able to convert its investments in inventory and accounts receivable into cash more efficiently.
Comparing the data to prior years, the cash conversion cycle was relatively high in 2021 at 60.35 days, but it decreased in 2020 to 50.93 days and remained consistent in 2019 at 51.82 days. This fluctuation suggests some volatility in the company's management of its working capital.
Overall, a decreasing trend in the cash conversion cycle is generally positive as it indicates that the company is managing its working capital effectively and converting its assets into cash faster. However, it would be important to further analyze the specific drivers behind these changes to assess the company's overall efficiency in managing its cash flow.
Peer comparison
Dec 31, 2023