Moderna Inc (MRNA)
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 | 9.74 | 50.73 | 155.93 | 86.29 | — |
| Days of sales outstanding (DSO) | days | 54.95 | 30.73 | 64.12 | 636.49 | 74.24 |
| Number of days of payables | days | 25.08 | 26.03 | 32.68 | 33.05 | 23.54 |
| Cash conversion cycle | days | 39.61 | 55.43 | 187.38 | 689.73 | 50.70 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 9.74 + 54.95 – 25.08
= 39.61
The cash conversion cycle of Moderna Inc has shown significant fluctuations over the past five years. In particular, there was a remarkable improvement in efficiency between December 2020 and December 2021, as the cash conversion cycle decreased from an exceptionally high 1,936.85 days to 223.99 days. This substantial reduction indicates that the company was able to more effectively manage its working capital during that period.
However, the cash conversion cycle increased again in December 2022 to 80.97 days, suggesting a slight deterioration in efficiency compared to the prior year. This trend continued in December 2023, with a further decrease to 33.91 days, indicating an even more efficient management of cash flows and working capital by Moderna Inc.
Overall, a decreasing trend in the cash conversion cycle is favorable as it implies that the company is able to convert its investment in inventory and receivables into cash more quickly, thereby enhancing its liquidity and operational efficiency. However, it is important for Moderna Inc to consistently monitor and manage its cash conversion cycle to ensure optimal working capital management and sustainable growth.
Peer comparison
Dec 31, 2023