Pacira Pharmaceuticals Inc (PCRX)

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	206.25	175.94	256.47	201.12	199.40
Days of sales outstanding (DSO)	days	60.55	57.29	64.92	45.06	41.21
Number of days of payables	days	31.03	27.87	27.44	32.45	43.78
Cash conversion cycle	days	235.78	205.35	293.95	213.74	196.82

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 206.25 + 60.55 – 31.03
= 235.78

The cash conversion cycle of Pacira BioSciences Inc has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle was 232.31 days, indicating that it takes approximately 232 days to convert its investments in inventory and other resources into cash from sales. This represents an increase compared to the previous year, where the cash conversion cycle was 201.92 days.

In 2021, the cash conversion cycle significantly increased to 293.95 days, reflecting a prolonged period for Pacira BioSciences Inc to recoup its investment in inventory and receive cash from sales. However, the company managed to improve its cash conversion efficiency in 2020 with a cycle of 213.74 days, lower than in 2021.

In 2019, the cash conversion cycle was 196.82 days, indicating a relatively efficient cash conversion process compared to the subsequent years. Overall, the fluctuation in the cash conversion cycle of Pacira BioSciences Inc over the years suggests varying levels of effectiveness in managing working capital and converting investments into cash, highlighting the importance of continuously monitoring and optimizing the company's operational efficiency.