Quidel Corporation (QDEL)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	130.18	123.32	143.83	169.64	132.78
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	130.18	123.32	143.83	169.64	132.78

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 130.18 + — – —
= 130.18

The cash conversion cycle of Quidel Corporation has shown variability over the past five years. The cycle started at 132.78 days as of December 31, 2020, increased to 169.64 days by December 31, 2021, decreased to 143.83 days by December 31, 2022, further declined to 123.32 days by December 31, 2023, and slightly increased to 130.18 days by December 31, 2024.

A higher cash conversion cycle indicates that the company takes longer to convert its investments in inventory back into cash. This could be attributed to longer inventory turnover or longer collection periods from customers, both of which can tie up company funds and be less efficient.

While Quidel Corporation managed to reduce its cash conversion cycle towards the end of the observed period, it is important for the company to continue monitoring and improving this metric to ensure efficient working capital management and optimize cash flow operations.