Impinj Inc (PI)
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 | 135.14 | 83.35 | 49.03 | 96.50 | 91.63 |
| Days of sales outstanding (DSO) | days | 66.19 | 71.60 | 68.23 | 67.40 | 56.90 |
| Number of days of payables | days | 12.04 | 44.96 | 26.19 | 26.95 | 15.02 |
| Cash conversion cycle | days | 189.28 | 110.00 | 91.06 | 136.95 | 133.50 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 135.14 + 66.19 – 12.04
= 189.28
The cash conversion cycle of Impinj Inc has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle increased significantly to 189.28 days, compared to 2022 when it was 110.00 days. This indicates that the company took longer to convert its investments in inventory and accounts receivable into cash during 2023.
In 2021, the cash conversion cycle was relatively low at 91.06 days, reflecting efficient management of working capital and quicker conversion of inventory and receivables into cash. However, in 2020 and 2019, the cash conversion cycle increased to 136.95 days and 133.50 days, respectively, suggesting some challenges in managing working capital during those years.
Overall, the trend in Impinj Inc's cash conversion cycle indicates variability in the efficiency of its cash conversion process over the years. It is essential for the company to focus on optimizing its working capital management to ensure a shorter cash conversion cycle, which can improve liquidity and financial performance in the long term.
Peer comparison
Dec 31, 2023