Impinj Inc (PI)
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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 132.18 | 119.72 | 114.20 | 122.92 | 135.14 | 152.49 | 165.54 | 138.21 | 83.35 | 61.88 | 65.78 | 68.73 | 49.03 | 42.95 | 60.49 | 74.47 | 96.50 | 100.40 | 94.54 | 80.20 |
| Days of sales outstanding (DSO) | days | 56.82 | 68.53 | 63.49 | 73.78 | 66.19 | 57.24 | 68.76 | 77.49 | 71.60 | 64.24 | 70.20 | 71.46 | 68.23 | 57.03 | 61.07 | 64.20 | 67.40 | 45.77 | 36.53 | 61.57 |
| Number of days of payables | days | 22.96 | 27.78 | 21.64 | 13.19 | 12.04 | 15.73 | 40.72 | 59.13 | 44.96 | 25.68 | 20.73 | 19.82 | 26.19 | 19.66 | 26.83 | 23.34 | 26.95 | 22.72 | 11.40 | 17.04 |
| Cash conversion cycle | days | 166.04 | 160.46 | 156.04 | 183.51 | 189.28 | 194.00 | 193.59 | 156.57 | 110.00 | 100.44 | 115.25 | 120.37 | 91.06 | 80.32 | 94.74 | 115.33 | 136.95 | 123.44 | 119.66 | 124.74 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 132.18 + 56.82 – 22.96
= 166.04
The cash conversion cycle of Impinj Inc has exhibited fluctuations over the observation period. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cycle is generally favorable as it indicates the company is efficiently managing its working capital.
From March 2020 to September 2021, the cash conversion cycle of Impinj Inc showed a decreasing trend, reaching a low of 80.32 days in September 2021. This indicates the company was effectively managing its inventory, accounts receivable, and accounts payable during this period. However, from March 2022 to December 2024, the cycle increased steadily, reaching a high of 194.00 days in September 2023 before declining slightly.
The increasing trend in the cash conversion cycle from 2022 onwards may suggest potential challenges in managing working capital efficiency, impacting the company's liquidity and operational performance. It is important for Impinj Inc to closely monitor and address factors contributing to this rise to ensure optimal cash flow management and sustainable business operations.
Peer comparison
Dec 31, 2024