Mednax Inc (MD)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 3.14 | 2.45 | 2.93 | — | — | 2.40 | — | 4.17 | — | 3.43 | 5.21 | 5.25 | — | 170.88 | 2.19 | 2.67 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 3.14 | 2.45 | 2.93 | 0.00 | 0.00 | 2.40 | 0.00 | 4.17 | 0.00 | 3.43 | 5.21 | 5.25 | 0.00 | 170.88 | 2.19 | 2.67 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Mednax Inc has shown fluctuations over the periods provided. The cash conversion cycle is calculated as the sum of days in inventory plus days sales outstanding (DSO) minus days payables outstanding (DPO).
- In September 2020, the cash conversion cycle increased significantly to 170.88 days, indicating that the company took a longer time to convert its investments in inventory and accounts receivable into cash, possibly signaling inefficiencies in managing working capital.
- Subsequently, in December 2020, March 2021, and June 2021, the cash conversion cycle decreased significantly to 0.00 days, implying that the company was able to promptly convert its investments into cash, potentially due to more efficient inventory management and collections from customers.
- Moving forward, there were minor fluctuations in the cash conversion cycle, with values ranging from 0.00 to around 5 days, indicating relatively stable working capital management practices.
- Overall, a lower cash conversion cycle is desirable as it signifies that the company is efficiently managing its working capital and converting investments into cash quickly. It is essential for Mednax Inc to consistently monitor and improve its cash conversion cycle to ensure optimal liquidity and operational efficiency.
Peer comparison
Dec 31, 2024