Impinj Inc (PI)
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 | 132.18 | 135.14 | 83.35 | 49.03 | 96.50 |
| Days of sales outstanding (DSO) | days | 56.63 | 66.19 | 71.60 | 68.23 | 67.40 |
| Number of days of payables | days | 22.96 | 12.04 | 44.96 | 26.19 | 26.95 |
| Cash conversion cycle | days | 165.86 | 189.28 | 110.00 | 91.06 | 136.95 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 132.18 + 56.63 – 22.96
= 165.86
The cash conversion cycle of Impinj Inc has shown some fluctuation over the years based on the data provided.
- In December 31, 2020, the cash conversion cycle was 136.95 days, indicating that it took the company approximately 136.95 days to convert its investments in inventory and other resources into cash.
- By December 31, 2021, the cash conversion cycle decreased to 91.06 days, implying that the company improved its efficiency in managing its cash flow and working capital.
- However, in December 31, 2022, the cash conversion cycle increased to 110.00 days, which suggests a slight slowdown in the conversion of investments into cash compared to the previous year.
- The cash conversion cycle notably rose to 189.28 days by December 31, 2023, indicating a significant delay in the conversion process, which could be a cause for concern.
- By December 31, 2024, the cash conversion cycle decreased to 165.86 days, but it still remained elevated compared to previous years, indicating potential challenges in managing working capital efficiently.
Overall, the fluctuation in the cash conversion cycle of Impinj Inc over the years suggests varying degrees of effectiveness in managing its working capital and converting investments into cash, with potential implications for the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2024