Moderna Inc (MRNA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.17 | 15.71 | 63.96 | 200.98 | 2,162.49 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 29.17 | 15.71 | 63.96 | 200.98 | 2,162.49 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 29.17 + — – —
= 29.17
The cash conversion cycle of Moderna Inc has shown a significant improvement over the years, reflecting the company's ability to manage its working capital efficiently. In December 31, 2020, the cash conversion cycle was 2,162.49 days, indicating a prolonged period between the company's cash outflows for inventory and cash inflows from sales. However, by December 31, 2024, the cash conversion cycle had reduced to 29.17 days, demonstrating a substantial enhancement in the company's cash management processes.
The decreasing trend in the cash conversion cycle suggests that Moderna Inc has streamlined its operations, reducing the time it takes to convert inventory into cash. This improvement can be attributed to enhanced inventory management, faster sales realization, and more efficient collection of receivables. A lower cash conversion cycle indicates that the company is able to generate cash more quickly, which can positively impact its liquidity and overall financial health.
Overall, the decreasing trend in Moderna Inc's cash conversion cycle showcases the company's commitment to optimizing its working capital efficiency and enhancing its financial performance over the years.
Peer comparison
Dec 31, 2024