Penumbra Inc (PEN)
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 | 337.70 | 376.79 | 390.84 | 353.33 | 360.55 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 337.70 | 376.79 | 390.84 | 353.33 | 360.55 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 337.70 + — – —
= 337.70
Based on the provided data for Penumbra Inc's cash conversion cycle over the years 2020 to 2024, it is seen that there has been fluctuation in the cash conversion cycle. In 2020, the cash conversion cycle stood at 360.55 days, showing a decrease to 353.33 days by the end of 2021. However, in 2022, there was an increase to 390.84 days, followed by a slight decrease in 2023 to 376.79 days, and a further decrease to 337.70 days by the end of 2024.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital, including inventory, accounts receivable, and accounts payable.
Penumbra Inc's decreasing trend in the cash conversion cycle from 2020 to 2024 may suggest improvements in the company's efficiency in managing its working capital. However, the fluctuations in the cycle over the years may also indicate changes in the company's operating and financial strategies that impact its cash conversion efficiency. Further analysis and comparison with industry benchmarks would provide additional insights into the company's liquidity and operational performance.
Peer comparison
Dec 31, 2024