Regeneron Pharmaceuticals Inc (REGN)

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	349.51	354.33	345.59	338.41	331.61	484.22	489.44	516.47	561.08	371.81	356.36	311.79	311.42	416.23	440.41	549.49	499.83	385.30	332.13	288.13
Days of sales outstanding (DSO)	days	159.83	161.38	155.30	146.30	158.58	156.49	148.34	151.82	160.56	148.32	132.93	107.36	137.58	147.41	207.20	166.52	134.32	158.13	108.94	116.11
Number of days of payables	days	89.38	58.39	67.55	83.68	77.95	101.42	106.82	127.69	137.64	—	—	—	90.01	—	—	—	124.01	—	—	—
Cash conversion cycle	days	419.96	457.32	433.34	401.03	412.24	539.30	530.97	540.59	584.01	520.13	489.29	419.14	358.99	563.64	647.61	716.01	510.15	543.43	441.07	404.23

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 349.51 + 159.83 – 89.38
= 419.96

The cash conversion cycle for Regeneron Pharmaceuticals Inc has shown fluctuations over the years. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From the data provided, we observe that the cash conversion cycle was relatively high in the earlier periods, reaching a peak of 716.01 days on March 31, 2021. This indicates that Regeneron Pharmaceuticals was taking a longer time to convert its investments into cash during that period.

However, over the subsequent quarters, there was a significant improvement in the cash conversion cycle, with a notable decrease observed by December 31, 2021, where it dropped to 358.99 days. This improvement may suggest a streamlining of inventory management processes and an enhancement in the company's overall efficiency in converting resources into cash.

In the following periods, the trend continued to be favorable, with fluctuations but generally maintaining a lower range compared to the earlier years. By December 31, 2024, the cash conversion cycle had decreased to 419.96 days, showing a more efficient conversion of resources into cash compared to previous years.

Overall, the decreasing trend in the cash conversion cycle over the years indicates an improvement in Regeneron Pharmaceuticals Inc's operational efficiency and effectiveness in managing its working capital, which is a positive signal for the company's financial health and liquidity position.