Proto Labs Inc (PRLB)
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 | 16.17 | 16.35 | 16.10 | 16.70 | 17.68 | 18.02 | 18.90 | 18.83 | 18.16 | 19.46 | 19.90 | 19.02 | 18.10 | 14.34 | 14.29 | 16.43 | 18.31 | 17.31 | 17.53 | 16.98 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 16.17 | 16.35 | 16.10 | 16.70 | 17.68 | 18.02 | 18.90 | 18.83 | 18.16 | 19.46 | 19.90 | 19.02 | 18.10 | 14.34 | 14.29 | 16.43 | 18.31 | 17.31 | 17.53 | 16.98 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 16.17 + — – —
= 16.17
Proto Labs Inc has shown a fluctuating trend in its cash conversion cycle over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle indicates the average number of days it takes for a company to convert its resources invested in inventory and accounts receivable back into cash.
The company experienced a slight increase in the cash conversion cycle from around 17 days in March 2020 to nearly 19 days in March 2022. Subsequently, there was a decrease in the cycle to around 16 days by June 2024, indicating an improvement in efficiency in managing its working capital.
Overall, despite some fluctuations, Proto Labs Inc has managed to keep its cash conversion cycle relatively stable, which is essential for ensuring efficient use of resources and maintaining liquidity. A lower cash conversion cycle typically signifies better efficiency in managing working capital, while a higher cycle may indicate delays in converting inventory and receivables into cash.
Peer comparison
Dec 31, 2024