Mednax Inc (MD)
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 | 25.38 | 15.36 | 17.98 | — | — | 13.67 | — | 20.92 | — | 15.86 | 21.52 | 21.58 | — | 753.76 | 2.70 | 3.46 | — | 55.16 | 161.87 | 207.25 |
| Days of sales outstanding (DSO) | days | 50.90 | 51.39 | 50.59 | 52.37 | 57.76 | 60.36 | 65.43 | 63.72 | 63.36 | 58.49 | 59.47 | 56.32 | 41.61 | 40.54 | 49.31 | 54.17 | 53.65 | 52.74 | 53.50 | 54.55 |
| Number of days of payables | days | 64.92 | 46.00 | 44.72 | 49.33 | 43.86 | 38.37 | 40.82 | 38.86 | 45.58 | 43.09 | 46.29 | 65.56 | 55.43 | 47.62 | 9.22 | 8.48 | 5.62 | 6.16 | 14.71 | 16.44 |
| Cash conversion cycle | days | 11.37 | 20.75 | 23.85 | 3.05 | 13.90 | 35.65 | 24.62 | 45.78 | 17.78 | 31.26 | 34.70 | 12.35 | -13.81 | 746.68 | 42.79 | 49.16 | 48.03 | 101.75 | 200.66 | 245.37 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.38 + 50.90 – 64.92
= 11.37
The cash conversion cycle for Pediatrix Medical Group Inc has been relatively stable in recent quarters, ranging from 49.55 days to 54.93 days. This indicates that the company is efficiently managing its working capital and converting its investments in inventory and accounts receivable into cash within a reasonable timeframe. The decreasing trend from Q2 2022 to Q2 2023 suggests improved efficiency in managing the company's cash flow cycle. However, the slight increase in Q4 2023 compared to the previous quarter may indicate a temporary slowdown in cash conversion efficiency. Monitoring and managing the cash conversion cycle closely will be crucial for sustaining optimal working capital management and liquidity in the future.
Peer comparison
Dec 31, 2023