Progyny Inc (PGNY)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 88.24 | 108.92 | 119.04 | 118.93 | 95.93 | 112.08 | 118.07 | 151.16 | 131.12 | 168.69 | 157.31 | 151.92 | 115.28 | 123.26 | 134.88 | 132.28 | 97.41 | 121.65 | 98.55 |
| Number of days of payables | days | 31.56 | 44.37 | 52.16 | 45.57 | 44.60 | 49.11 | 52.05 | 63.68 | 52.24 | 55.89 | 56.42 | 58.29 | 47.86 | 46.01 | 47.51 | 56.61 | 47.23 | 51.16 | 43.87 |
| Cash conversion cycle | days | 56.68 | 64.56 | 66.88 | 73.35 | 51.33 | 62.97 | 66.02 | 87.48 | 78.87 | 112.80 | 100.89 | 93.63 | 67.42 | 77.25 | 87.36 | 75.67 | 50.18 | 70.49 | 54.68 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 88.24 – 31.56
= 56.68
The cash conversion cycle is a measure of how efficiently a company manages its working capital. It is calculated by adding the number of days it takes for a company to sell its inventory, the number of days it takes to collect accounts receivable, and subtracting the number of days it takes to pay its accounts payable.
Based on the data provided for Progyny Inc, we can see fluctuations in the cash conversion cycle over the quarters. In June 2020, the cash conversion cycle was 54.68 days, indicating that the company was able to convert its inventory into cash relatively quickly. However, by June 2022, the cash conversion cycle had increased significantly to 100.89 days, suggesting a potential issue with managing working capital efficiently.
Subsequently, there was a decrease in the cash conversion cycle by December 2023, where it dropped to 51.33 days. This indicates a positive improvement in working capital management efficiency. The trend continued into December 2024, with the cash conversion cycle further decreasing to 56.68 days, showing continued efficiency in managing working capital.
It is important for Progyny Inc to closely monitor and manage its cash conversion cycle to ensure that it is optimizing its working capital and liquidity position. Fluctuations in the cash conversion cycle can impact the company's financial health and overall performance. Maintaining a lower cash conversion cycle indicates that the company is efficiently managing its inventory, accounts receivable, and accounts payable, leading to improved cash flow and profitability.
Peer comparison
Dec 31, 2024