Quidel Corporation (QDEL)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023
Days of inventory on hand (DOH)	days	89.61	83.75	82.06	84.50
Days of sales outstanding (DSO)	days	53.84	54.57	42.41	—
Number of days of payables	days	45.72	38.41	34.19	38.61
Cash conversion cycle	days	97.73	99.91	90.28	45.90

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.61 + 53.84 – 45.72
= 97.73

The cash conversion cycle of Quidel Corporation has exhibited some fluctuations over recent quarters. In the most recent quarter, ending on December 31, 2023, the cash conversion cycle stood at 97.73 days, indicating that it takes the company approximately 98 days to convert its investments in inventory and other resources into cash flows from sales. This is slightly lower than the previous quarter's 99.91 days but higher compared to the quarter ending on June 30, 2023, where the cycle was at 90.28 days.

Notably, the cash conversion cycle spiked to 45.90 days in the quarter ending on March 31, 2023, indicating a significant improvement in the conversion efficiency compared to other quarters. However, it is important to investigate the reasons behind this fluctuation in order to better understand Quidel Corporation's operational efficiency and working capital management. Overall, closely monitoring and optimizing the cash conversion cycle can help the company enhance its liquidity position and overall financial performance.