Myriad Genetics Inc (MYGN)

Cash conversion cycle

		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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Days of inventory on hand (DOH)	days	14.60	14.05	12.24	10.83	9.94	9.97	11.79	12.68	14.23	10.10	9.73	9.08	10.19	11.16	13.56	14.89	15.99	15.91	16.64	16.66
Days of sales outstanding (DSO)	days	56.14	54.09	56.25	55.97	57.48	58.56	62.83	54.92	45.46	48.22	44.20	39.38	51.28	58.64	62.41	54.20	41.27	51.10	55.45	54.05
Number of days of payables	days	16.50	17.92	16.48	12.70	13.42	17.63	19.75	18.16	21.48	14.23	16.90	17.57	8.60	17.96	11.46	10.69	11.93	15.65	12.44	14.23
Cash conversion cycle	days	54.24	50.22	52.01	54.10	54.00	50.90	54.88	49.44	38.20	44.08	37.02	30.89	52.87	51.83	64.50	58.39	45.34	51.36	59.66	56.48

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.60 + 56.14 – 16.50
= 54.24

The cash conversion cycle of Myriad Genetics Inc fluctuated over the past quarters, ranging from a low of 30.89 days in March 31, 2022, to a high of 64.50 days in March 31, 2021. The company's cash conversion cycle is a metric used to measure how long it takes a company to convert its investments in inventory into cash flows from sales.

In general, a shorter cash conversion cycle indicates that the company is able to quickly sell its inventory and collect cash from customers, which is a positive sign of efficiency. On the other hand, a longer cash conversion cycle may indicate potential issues such as slow inventory turnover or delays in collecting receivables.

Myriad Genetics Inc's cash conversion cycle showed some variability over the quarters, with an overall increasing trend in recent periods. This may suggest that the company is taking longer to convert its investments in inventory into cash, which could potentially impact its liquidity and working capital management.

Further analysis and comparison with industry benchmarks are recommended to better understand the underlying reasons for the fluctuations in Myriad Genetics Inc's cash conversion cycle and to assess its implications for the company's financial performance.