Progyny Inc (PGNY)
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 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 95.93 | 131.12 | 115.28 | 97.41 | 88.31 |
| Number of days of payables | days | 44.60 | 52.21 | 47.80 | 47.03 | 31.95 |
| Cash conversion cycle | days | 51.33 | 78.91 | 67.48 | 50.38 | 56.37 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 95.93 – 44.60
= 51.33
The cash conversion cycle for Progyny Inc has shown fluctuating trends over the past five years. In 2023, the company's cash conversion cycle decreased significantly to 27.22 days from 46.97 days in 2022, indicating an improvement in the efficiency of the company's working capital management. This reduction suggests that Progyny Inc is able to convert its investments in inventory and receivables into cash more quickly, which can improve liquidity and overall financial health.
Comparing 2023 to 2021, there was also a decline in the cash conversion cycle from 40.42 days to 27.22 days, highlighting a positive trend in managing the company's cash flow and operating cycle. Additionally, the cash conversion cycle in 2023 was lower compared to 2020 and 2019, indicating that Progyny Inc has become more efficient in managing its working capital over the years.
Overall, the decreasing trend in the cash conversion cycle for Progyny Inc reflects improved efficiency in managing its cash flow operations and converting invested capital into cash, potentially leading to enhanced financial performance and stability.
Peer comparison
Dec 31, 2023