Myriad Genetics Inc (MYGN)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Jun 30, 2020	Jun 30, 2019
Days of inventory on hand (DOH)	days	10.74	12.56	9.09	15.58	18.24
Days of sales outstanding (DSO)	days	55.97	54.92	39.39	41.28	60.22
Number of days of payables	days	12.60	17.99	17.59	11.62	19.34
Cash conversion cycle	days	54.11	49.49	30.89	45.24	59.12

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.74 + 55.97 – 12.60
= 54.11

The cash conversion cycle of Myriad Genetics, Inc. has exhibited varying trends over the past five years. In 2023, the cash conversion cycle extended to 49.52 days, reflecting a notable increase compared to the previous year's figure of 38.94 days. This suggests that the company took longer to convert its investments in inventory into cash receipts from sales during the most recent fiscal year.

Comparing to the period in 2021, where the cash conversion cycle was significantly shorter at 21.84 days, the increase to 49.52 days in 2023 indicates a potential inefficiency in managing the company's working capital. A longer cash conversion cycle may be indicative of delays in collecting receivables or possible inefficiencies in inventory management during 2023.

In contrast, the cash conversion cycle was relatively consistent at around 55 days in 2020 and 2019. This stability in the cash conversion cycle during these years suggests that the company maintained a similar level of efficiency in its working capital management during these periods.

Overall, the upward trend in the cash conversion cycle from 2021 to 2023 may require further investigation to understand the underlying factors driving the change in working capital efficiency within Myriad Genetics, Inc.