Neurocrine Biosciences Inc (NBIX)

Cash conversion cycle

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	15.05	11.79	13.32	14.81	16.50	18.46	15.32	16.12	19.09	17.36	20.97	24.67	23.70	17.58	20.22	20.33	17.89	11.98	14.32	16.62
Days of sales outstanding (DSO)	days	85.16	87.37	86.03	94.91	90.50	85.26	85.06	82.05	61.85	57.90	58.21	53.92	57.49	57.57	56.59	64.87	60.45	64.58	59.83	52.22
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	100.21	99.15	99.34	109.72	107.00	103.72	100.38	98.17	80.93	75.26	79.17	78.59	81.19	75.14	76.81	85.20	78.34	76.56	74.14	68.84

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.05 + 85.16 – —
= 100.21

The cash conversion cycle of Neurocrine Biosciences, Inc. has exhibited fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 437.10 days, showing an improvement from the previous quarter's 355.72 days. This suggests that the company was able to convert its investments in inventory and receivables into cash more efficiently in the most recent quarter.

Comparing the data over the quarters, it is noted that Q1 2023 had the highest cash conversion cycle of 539.27 days, indicating a longer period required to convert investments into cash during that period. Conversely, in Q3 2022, the company had the lowest cash conversion cycle of 682.74 days, showing an improvement in working capital management.

Overall, there have been fluctuations in the cash conversion cycle of Neurocrine Biosciences, Inc. over the analyzed periods, indicating variations in the company's efficiency in managing its working capital components. It is essential for the company to monitor and strive for improvements in its cash conversion cycle to enhance its overall financial performance and liquidity management.