NeoGenomics Inc (NEO)
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 | 25.87 | 24.09 | 23.07 | 20.67 | 25.41 | 25.75 | 27.49 | 27.41 | 27.53 | 27.11 | 25.36 | 28.79 | 28.73 | 27.93 | 27.62 | 28.60 | 41.68 | 30.51 | 34.41 | 33.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 25.87 | 24.09 | 23.07 | 20.67 | 25.41 | 25.75 | 27.49 | 27.41 | 27.53 | 27.11 | 25.36 | 28.79 | 28.73 | 27.93 | 27.62 | 28.60 | 41.68 | 30.51 | 34.41 | 33.17 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.87 + — – —
= 25.87
The cash conversion cycle for NeoGenomics Inc has shown a fluctuating trend over the past few quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a high of 41.68 days to a low of 20.67 days. Generally, a shorter cash conversion cycle indicates better efficiency in managing working capital and generating cash flow.
In the recent periods, from March 31, 2023, to December 31, 2024, the company managed to significantly reduce its cash conversion cycle from around 27 to 25 days. This suggests an improved ability to quickly sell inventory, collect receivables, and settle payables.
Overall, NeoGenomics Inc appears to be making strides in optimizing its cash conversion cycle, reflecting positive operational performance and effective management of working capital. This trend is favorable as it indicates efficient use of resources and potential for improved liquidity in the future.