Penumbra Inc (PEN)

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 376.79 378.41 378.36 385.47 390.84 379.95 360.53 344.33 353.33 354.15 363.29 387.99 360.55 355.28 371.69 336.49 318.30 300.67 296.00 276.24
Days of sales outstanding (DSO) days 69.57 75.79 81.33 85.56 87.63 83.12 84.82 66.92 65.39 61.69 — 77.90 74.64 76.43 67.57 68.21 70.61 71.07 72.97 73.42
Number of days of payables days 26.37 28.31 27.23 31.59 31.22 30.09 28.14 17.74 18.00 18.75 — 24.34 23.17 26.98 29.24 32.08 31.44 25.62 19.50 17.46
Cash conversion cycle days 420.00 425.89 432.46 439.43 447.25 432.99 417.21 393.50 400.73 397.08 363.29 441.56 412.02 404.73 410.02 372.61 357.47 346.12 349.48 332.20

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 376.79 + 69.57 – 26.37
= 420.00

The cash conversion cycle for Penumbra Inc has shown a fluctuating trend over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 393.50 days, which increased to 417.21 days in Q2 2022 before decreasing to 432.99 days in Q3 2022. However, in Q4 2022, there was a significant jump to 447.25 days, indicating potential inefficiencies in the company's cash management and working capital processes at that time.

Subsequently, there was a gradual improvement in the cash conversion cycle, with Q1 2023 showing a decrease to 439.43 days. However, in Q2 2023, the cycle increased to 432.46 days before reaching 425.89 days in Q3 2023. Notably, in Q4 2023, the cycle further decreased to 420.00 days, suggesting more efficient management of working capital and cash flow at the end of the observed period.

Overall, Penumbra Inc's cash conversion cycle has exhibited variability over the quarters, with the company experiencing periods of inefficiency followed by improvements in working capital management. Further analysis of the underlying factors affecting the cash conversion cycle is necessary to determine areas for potential optimization and sustained efficiency in the future.