Protagonist Therapeutics Inc (PTGX)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	88.86	114.12	—	—	—	77.86	0.21	0.22	0.22	111.13	0.24	0.25
Days of sales outstanding (DSO)	days	—	—	—	148.37	18.96	52.65	6.43	26.97	221.77	71.09	67.64	132.54	68.31	48.85	47.25	94.78	213.43	633.45	195.47	229.15
Number of days of payables	days	32.17	8.41	14.25	53.31	49.20	41.86	53.17	15.75	82.31	21.47	10.34	127.87	49.79	60.22	57.51	61.75	81.64	64.66	38.12	70.13
Cash conversion cycle	days	-32.17	-8.41	-14.25	95.06	-30.25	10.79	-46.75	11.22	228.32	163.74	57.31	4.68	18.52	66.50	-10.06	33.25	132.01	679.92	157.59	159.27

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 32.17
= -32.17

The cash conversion cycle measures how efficiently a company manages its cash flow by analyzing the time it takes for a company to convert its resources into cash. A negative cash conversion cycle is generally considered favorable as it indicates that a company is able to convert its inventory into cash quickly, thus improving liquidity and operating efficiency.

Looking at the historical trend of Protagonist Therapeutics Inc's cash conversion cycle, we can observe fluctuations in the efficiency of their cash conversion over time. In the most recent quarter ending March 31, 2024, the company achieved a significantly improved cash conversion cycle of -32.17 days, indicating a strong ability to convert its investments, inventory, and accounts receivable into cash efficiently. This was a positive trend from the previous quarter where the cash conversion cycle was less efficient at -8.41 days.

However, it's important to note that the company experienced challenges with cash conversion in the quarter ending March 31, 2022, where the cash conversion cycle was at its highest at 228.32 days. This prolonged cycle suggests that the company may have faced difficulties in managing its working capital effectively. The subsequent quarters showed improvements in cash conversion efficiency, albeit with some fluctuations.

Overall, Protagonist Therapeutics Inc has demonstrated varying levels of efficiency in managing its cash conversion cycle over the analyzed periods. Investors and stakeholders may monitor this metric closely to assess the company's operational efficiency and liquidity management practices.