Neurocrine Biosciences Inc (NBIX)
Cash conversion cycle
| Dec 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 20.09 | 16.93 | 16.15 | 14.63 | 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 |
| Days of sales outstanding (DSO) | days | 76.48 | 78.34 | 80.72 | 85.48 | 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 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 96.56 | 95.28 | 96.88 | 100.11 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.09 + 76.48 – —
= 96.56
The cash conversion cycle of Neurocrine Biosciences Inc has shown some fluctuations over the years, ranging from a low of 75.14 days in September 2020 to a high of 109.72 days in March 2023. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
A lower cash conversion cycle indicates that the company is able to more efficiently manage its working capital and convert its investments into cash quickly. Conversely, a higher cash conversion cycle suggests that the company may be facing challenges in managing its working capital efficiently.
Neurocrine Biosciences Inc's cash conversion cycle has generally been in the range of 75 to 110 days, which is common for companies in the biotechnology and pharmaceutical industry where research and development, regulatory approvals, and commercialization timelines can impact the cash conversion cycle.
It is important for the company to monitor its cash conversion cycle closely to ensure optimal management of working capital, efficient operations, and sustained cash flow generation. Efforts to shorten the cash conversion cycle can lead to improved liquidity, reduced reliance on external financing, and enhanced overall financial performance.
Peer comparison
Dec 31, 2024