NeoGenomics Inc (NEO)
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 | 12.45 | 12.54 | 13.20 | 13.19 | 15.26 | 10.85 | 11.32 | 14.28 | 14.13 | 15.85 | 15.60 | 15.91 | 22.64 | 17.02 | 18.57 | 17.68 | 12.90 | 14.21 | 10.37 | 12.09 |
| Days of sales outstanding (DSO) | days | 79.61 | 83.40 | 82.59 | 81.99 | 86.09 | 82.75 | 83.45 | 83.51 | 84.80 | 79.42 | 79.74 | 83.16 | 88.18 | 88.99 | 79.19 | 87.03 | 84.14 | 87.90 | 95.80 | 97.59 |
| Number of days of payables | days | 10.48 | 8.77 | 9.48 | 12.26 | 12.89 | 6.25 | 8.72 | 12.27 | 10.82 | 20.71 | 16.82 | 14.08 | 19.14 | 14.62 | 16.48 | 17.82 | 17.52 | 20.24 | 19.39 | 20.65 |
| Cash conversion cycle | days | 81.58 | 87.17 | 86.31 | 82.92 | 88.46 | 87.35 | 86.05 | 85.52 | 88.11 | 74.56 | 78.52 | 84.99 | 91.68 | 91.39 | 81.27 | 86.88 | 79.52 | 81.86 | 86.79 | 89.03 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.45 + 79.61 – 10.48
= 81.58
The cash conversion cycle for Neogenomics Inc. has exhibited fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 84.98 days from 91.97 days in Q3 2023. This improvement indicates that the company was able to manage its working capital more efficiently during that period.
Comparing the cycle to the previous year, there was a slight improvement from Q4 2022 to Q4 2023. However, the overall trend shows some variability without a clear direction in the short term.
Neogenomics Inc. should continue to monitor and analyze its cash conversion cycle to ensure that it is operating optimally. A lower cash conversion cycle indicates that the company is efficiently converting its investments in inventory and receivables into cash, which is crucial for its financial health and operational efficiency.