Quidel Corporation (QDEL)
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 | 121.66 | 128.25 | 133.72 | 133.09 | 134.78 | 129.12 | 126.86 | 131.50 | 143.62 | 184.28 | 245.40 | 107.38 | 169.64 | 185.38 | 231.88 | 195.25 | 132.78 | 132.43 | 153.22 | 98.88 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 121.66 | 128.25 | 133.72 | 133.09 | 134.78 | 129.12 | 126.86 | 131.50 | 143.62 | 184.28 | 245.40 | 107.38 | 169.64 | 185.38 | 231.88 | 195.25 | 132.78 | 132.43 | 153.22 | 98.88 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 121.66 + — – —
= 121.66
The cash conversion cycle of Quidel Corporation has shown fluctuations over the years based on the data provided. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally preferred as it indicates that the company is able to efficiently manage its working capital.
From March 31, 2020, to June 30, 2020, the cash conversion cycle increased significantly from 98.88 days to 153.22 days, indicating potential issues with managing inventory and receivables. However, the cycle decreased to 132.43 days by September 30, 2020, and remained relatively stable around that level for the next few quarters.
There was a notable increase in the cash conversion cycle to 231.88 days by June 30, 2021, which may raise concerns about the company's working capital management during that period. Subsequently, there were fluctuations in the cycle, with some periods showing improvements, such as the decrease to 121.66 days by December 31, 2024, suggesting more efficient management of working capital.
Overall, monitoring the cash conversion cycle is crucial for Quidel Corporation to ensure it effectively balances its inventory management, accounts receivable collection, and accounts payable payment processes to optimize its financial performance and liquidity position.
Peer comparison
Dec 31, 2024