Pacira BioSciences, Inc. (PCRX)
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 | 268.31 | 206.25 | 175.94 | 256.47 | 201.12 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 268.31 | 206.25 | 175.94 | 256.47 | 201.12 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 268.31 + — – —
= 268.31
The cash conversion cycle is a key metric that reflects the efficiency of Pacira BioSciences, Inc.'s working capital management. From 2020 to 2024, the trend in Pacira BioSciences' cash conversion cycle shows some fluctuations:
- In 2020, the company's cash conversion cycle was 201.12 days. This indicates that it took Pacira BioSciences approximately 201 days to convert its investments in inventory and receivables into cash.
- By the end of 2021, the cash conversion cycle increased to 256.47 days, suggesting a slowdown in Pacira BioSciences' ability to convert its resources into cash efficiently.
- In 2022, there was a notable improvement as the cash conversion cycle decreased to 175.94 days, indicating that the company managed its working capital more effectively during that period.
- However, by the end of 2023, the cash conversion cycle increased to 206.25 days, showing a slight setback in Pacira BioSciences' working capital management efficiency.
- The trend continued in 2024, where the cash conversion cycle further increased to 268.31 days, signifying a significant elongation in the company's cash conversion process compared to the previous year.
Overall, while there have been fluctuations in Pacira BioSciences' cash conversion cycle over the years, the company should focus on improving its working capital management to ensure a more consistent and efficient conversion of investments into cash in the future.
Peer comparison
Dec 31, 2024