Neurocrine Biosciences Inc (NBIX)
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 | 20.05 | 15.02 | 16.50 | 19.09 | 23.59 |
| Days of sales outstanding (DSO) | days | 76.48 | 85.14 | 90.50 | 61.85 | 59.00 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 96.54 | 100.16 | 107.00 | 80.93 | 82.59 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.05 + 76.48 – —
= 96.54
The cash conversion cycle of Neurocrine Biosciences Inc has shown some fluctuations over the years. In 2020, the company's cash conversion cycle was 82.59 days, which decreased slightly to 80.93 days by the end of 2021. However, there was a significant increase in the cash conversion cycle to 107.00 days by the end of 2022. This suggests that the company took longer to convert its investments in inventory and other resources back into cash during that period.
By the end of 2023, Neurocrine Biosciences Inc managed to reduce its cash conversion cycle to 100.16 days, indicating improvement in efficiency in managing its working capital. In 2024, the cash conversion cycle further decreased to 96.54 days, reflecting a continued focus on optimizing the company's liquidity and operational effectiveness.
Overall, despite some fluctuations, Neurocrine Biosciences Inc has shown a general trend towards improving its cash conversion cycle over the analyzed years. It is important for the company to continue monitoring and managing this cycle efficiently to ensure healthy cash flow and working capital management.
Peer comparison
Dec 31, 2024