Regeneron Pharmaceuticals Inc (REGN)

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	349.51	331.61	366.96	310.15	499.83
Days of sales outstanding (DSO)	days	159.65	158.58	160.56	137.58	134.56
Number of days of payables	days	89.38	77.95	90.02	89.64	124.01
Cash conversion cycle	days	419.78	412.24	437.50	358.09	510.38

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 349.51 + 159.65 – 89.38
= 419.78

The cash conversion cycle of Regeneron Pharmaceuticals Inc has shown variability over the past five years. In December 2020, the company's cash conversion cycle was relatively long at 510.38 days, indicating that it took the company a significant amount of time to convert its investments in raw materials into cash from sales.

However, there was a notable improvement in the efficiency of Regeneron's cash conversion cycle by December 2021, where it decreased to 358.09 days. This improvement suggests that the company managed its inventory, accounts receivable, and accounts payable more effectively, resulting in a quicker conversion of investments into cash.

In the following years, the cash conversion cycle fluctuated. By December 2022, it increased to 437.50 days before dropping to 412.24 days by December 2023. The cycle then experienced a slight increase to 419.78 days by December 2024.

Overall, Regeneron Pharmaceuticals Inc has made efforts to optimize its cash conversion cycle, with mixed results over the years. The fluctuations observed indicate potential areas for further improvement in managing working capital and operational efficiencies to enhance cash flow generation.