Proto Labs Inc (PRLB)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 11.27 | 11.44 | 12.00 | 11.96 | 11.53 | 12.56 | 12.85 | 12.48 | 11.71 | 9.15 | 9.11 | 10.29 | 11.63 | 11.09 | 11.29 | 10.86 | 10.51 | 9.84 | 10.23 | 10.11 |
| Days of sales outstanding (DSO) | days | 61.83 | 58.54 | 57.08 | 58.43 | 59.99 | 59.92 | 62.20 | 63.83 | 60.91 | 67.89 | 71.09 | 64.05 | 49.09 | 50.70 | 49.68 | 49.23 | 45.71 | 53.15 | 52.17 | 52.07 |
| Number of days of payables | days | 12.90 | 14.86 | 13.82 | 16.64 | 14.74 | 14.52 | 13.36 | 15.35 | 22.57 | 21.19 | 26.04 | 22.66 | 19.54 | 16.48 | 18.40 | 18.84 | 17.54 | 19.44 | 22.42 | 18.01 |
| Cash conversion cycle | days | 60.20 | 55.12 | 55.26 | 53.75 | 56.78 | 57.96 | 61.70 | 60.95 | 50.05 | 55.84 | 54.16 | 51.67 | 41.18 | 45.31 | 42.57 | 41.25 | 38.69 | 43.55 | 39.98 | 44.17 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 11.27 + 61.83 – 12.90
= 60.20
The cash conversion cycle of Proto Labs Inc has exhibited fluctuations over the past eight quarters. The company's ability to convert its investments in inventory and accounts receivable into cash seems to have improved in the most recent quarter compared to the previous quarters. In Q4 2023, the cash conversion cycle decreased to 51.82 days from 53.15 days in Q3 2023. This reduction suggests that Proto Labs managed its working capital more effectively in the most recent quarter.
Despite the improvement, the cash conversion cycle remains variable throughout the quarters, indicating potential challenges in managing the company's liquidity and operational efficiency. It is worth noting that the company experienced the longest cash conversion cycle in Q2 2022, reaching 61.34 days, while the shortest cycle was recorded in Q1 2023 at 51.06 days. Overall, Proto Labs Inc should continue to monitor and strive to optimize its cash conversion cycle to enhance its cash flow management and working capital efficiency.
Peer comparison
Dec 31, 2023