Myriad Genetics Inc (MYGN)

Cash conversion cycle

		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	Jun 30, 2019
Days of inventory on hand (DOH)	days	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	18.79
Days of sales outstanding (DSO)	days	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	60.22
Number of days of payables	days	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	19.92
Cash conversion cycle	days	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	59.08

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.05 + 54.09 – 17.92
= 50.22

The cash conversion cycle of Myriad Genetics Inc has shown some fluctuations over the past few quarters. It measures the time it takes for a company to convert its investment in inventory and other resources into cash collected from customers.

The trend in the cash conversion cycle for Myriad Genetics Inc has been somewhat erratic. In the most recent quarter, the cash conversion cycle was 50.22 days, down from 52.01 days in the previous quarter. This suggests an improvement in the company's ability to manage its working capital efficiently.

Looking further back, the cash conversion cycle has ranged from a low of 30.89 days in the first quarter of 2022 to a high of 64.50 days in the first quarter of 2021. This variability indicates potential challenges in managing inventory, receivables, and payables effectively across different periods.

It is important for Myriad Genetics Inc to focus on optimizing its cash conversion cycle to enhance liquidity and working capital management. By reducing the time it takes to convert investments into cash, the company can improve its financial health and operational efficiency. Regular monitoring and analysis of the cash conversion cycle will be beneficial for identifying trends and areas for improvement in the company's working capital management.