Pacira Pharmaceuticals Inc (PCRX)

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	206.25	177.13	160.27	159.90	175.94	200.31	228.95	260.98	256.47	179.66	180.62	198.25	201.12	219.58	229.11	199.54	199.40	222.57	201.31	188.09
Days of sales outstanding (DSO)	days	60.32	56.95	58.47	55.46	57.27	52.76	54.58	58.24	64.92	37.08	51.01	44.02	45.06	40.00	39.35	32.68	41.21	39.47	40.32	41.00
Number of days of payables	days	31.03	30.30	42.11	29.68	27.87	26.76	31.83	37.37	27.44	21.10	33.71	27.96	32.45	41.67	31.47	53.01	43.78	59.35	50.99	53.47
Cash conversion cycle	days	235.55	203.78	176.62	185.68	205.33	226.31	251.71	281.85	293.95	195.63	197.93	214.31	213.74	217.91	236.99	179.22	196.82	202.68	190.64	175.62

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 206.25 + 60.32 – 31.03
= 235.55

The cash conversion cycle of Pacira BioSciences Inc has shown varying trends over the past eight quarters. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle is generally considered favorable as it indicates a more efficient use of resources and faster cash generation.

In Q4 2023, the cash conversion cycle increased to 232.31 days compared to the previous quarter at 199.99 days. This indicates that Pacira BioSciences took longer to convert its investments into cash during this period, potentially signaling challenges in managing inventory or collecting receivables efficiently.

However, it is worth noting that the Q4 2023 cash conversion cycle was still lower than the levels seen in Q2 and Q1 2022 when it reached 251.26 days and 281.52 days, respectively. This suggests an improvement in efficiency compared to those periods.

Overall, a downward trend in the cash conversion cycle over time would be indicative of improved operational efficiency, tighter working capital management, and potentially stronger cash flow generation for Pacira BioSciences Inc. Monitoring the cash conversion cycle can provide insights into the company's liquidity position and effectiveness in managing its operating cycle.