NeoGenomics Inc (NEO)
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 | 26.35 | 25.41 | 27.53 | 28.73 | 41.68 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 26.35 | 25.41 | 27.53 | 28.73 | 41.68 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.35 + — – —
= 26.35
NeoGenomics Inc has shown a favorable trend in its cash conversion cycle over the past five years, indicating efficiency in managing its working capital. The company's cash conversion cycle decreased from 41.68 days in 2020 to 26.35 days in 2024. This indicates that NeoGenomics has been able to convert its investments in inventory and receivables into cash more quickly over the years.
A decreasing cash conversion cycle suggests that the company is managing its operating cycle effectively, efficiently turning its resources into cash. This improvement can lead to better cash flow management, reduced need for external financing, and increased liquidity. NeoGenomics' ability to shorten its cash conversion cycle demonstrates improved efficiency in its operations and working capital management, reflecting positively on its financial health.