Molina Healthcare Inc (MOH)

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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	33.25	27.01	26.68	28.61	26.28	26.00	27.01	27.12	28.61	27.26	28.75	30.30	31.42	35.09	32.61	33.90	30.49	27.13	25.59	27.01
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	33.25	27.01	26.68	28.61	26.28	26.00	27.01	27.12	28.61	27.26	28.75	30.30	31.42	35.09	32.61	33.90	30.49	27.13	25.59	27.01

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 33.25 – —
= 33.25

The cash conversion cycle for Molina Healthcare Inc has shown some fluctuations over the past eight quarters. In Q4 2022 and Q4 2023, the company had the longest cash conversion cycles of 26.28 days and 33.25 days, respectively. This indicates that it took Molina Healthcare Inc longer to convert its investments in inventory into cash during these periods.

On the other hand, in Q2 2023, the company experienced its shortest cash conversion cycle of 26.68 days, which suggests that it efficiently managed its accounts receivable, inventory, and accounts payable during that quarter.

Overall, Molina Healthcare Inc's cash conversion cycle has generally ranged between 26 and 33 days over the past eight quarters, indicating that the company has been relatively consistent in managing its working capital efficiency. It is important for Molina Healthcare Inc to closely monitor its cash conversion cycle to ensure optimal management of its liquidity and working capital.