NeoGenomics Inc (NEO)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 12.44 | 13.19 | 14.13 | 22.64 | 12.90 |
| Days of sales outstanding (DSO) | days | 79.61 | 85.98 | 85.40 | 89.44 | 85.12 |
| Number of days of payables | days | 10.47 | 11.14 | 10.82 | 19.14 | 17.52 |
| Cash conversion cycle | days | 81.58 | 88.02 | 88.71 | 92.93 | 80.50 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.44 + 79.61 – 10.47
= 81.58
Based on the data provided, Neogenomics Inc.'s cash conversion cycle has shown a fluctuating trend over the past five years. The company's cash conversion cycle decreased from 75.25 days in 2019 to 84.98 days in 2023. This suggests that Neogenomics has been able to manage its cash conversion cycle more efficiently in recent years, indicating potential improvements in working capital management.
However, it is worth noting that there was a slight increase in the cash conversion cycle from 2022 to 2023, which could indicate a potential slowdown in the company's collections or inventory turnover. Overall, Neogenomics' cash conversion cycle performance should be further monitored to ensure optimal working capital management and operational efficiency.