Molina Healthcare Inc (MOH)
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 29.62 | 30.35 | 31.53 | 34.10 | 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 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 29.62 | 30.35 | 31.53 | 34.10 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 29.62 – —
= 29.62
The cash conversion cycle of Molina Healthcare Inc has shown fluctuations over the periods provided. The cycle measures the time it takes for a company to convert its investments in inventory into cash flows from sales.
From March 2020 to December 2024, the cash conversion cycle has displayed a decreasing trend overall, indicating an improvement in the company's efficiency in managing its working capital. The cycle decreased significantly from 33.90 days in March 2020 to 29.62 days by December 2024.
A lower cash conversion cycle signifies that the company is able to efficiently manage its operations, inventory, and receivables, leading to quicker cash inflows and improved liquidity. This can indicate effective inventory management, faster collection of receivables, and better utilization of resources.
However, there were fluctuations in the cycle during this period, suggesting possible changes or challenges within the company's supply chain management, sales practices, or payment terms with customers. It is essential for Molina Healthcare Inc to continue monitoring and managing its cash conversion cycle to ensure sustainable growth and profitability.
Peer comparison
Dec 31, 2024