Molina Healthcare Inc (MOH)
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 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 33.25 | 26.28 | 28.61 | 31.42 | 30.49 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 33.25 | 26.28 | 28.61 | 31.42 | 30.49 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 33.25 – —
= 33.25
Molina Healthcare Inc's cash conversion cycle has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle increased to 33.25 days compared to 26.28 days in 2022, indicating a longer time taken to convert its investments in inventory back into cash. This trend is a departure from the efficiency achieved in 2022.
In 2021, the cash conversion cycle was 28.61 days, showing a slight improvement from 2020 when it was 31.42 days. This suggests that in 2021, Molina Healthcare Inc was quicker in converting its investments into cash, which is a positive indication of operational efficiency.
Comparing 2019 and 2020, there was a slight increase in the cash conversion cycle from 30.49 days to 31.42 days. This indicates that Molina Healthcare Inc took slightly longer to convert its investments into cash in 2020 compared to 2019.
Overall, Molina Healthcare Inc's cash conversion cycle has experienced some variability over the past five years. It would be important for the company to analyze the underlying factors driving these fluctuations to improve its working capital management efficiency and ensure optimal cash flow operations.
Peer comparison
Dec 31, 2023