Regeneron Pharmaceuticals Inc (REGN)

Cash conversion cycle

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 331.61 484.22 489.44 516.47 561.08 371.81 356.36 311.79 311.42 416.23 440.41 549.49 499.83 385.30 332.13 288.13 269.16 280.93 284.09 269.65
Days of sales outstanding (DSO) days 158.58 156.49 148.34 151.82 160.56 148.32 132.93 107.36 137.58 147.41 207.20 166.52 134.32 158.13 108.94 116.11 109.90 114.00 109.91 106.81
Number of days of payables days 77.95 101.42 106.82 127.69 137.64 90.01 124.01 79.50
Cash conversion cycle days 412.24 539.30 530.97 540.59 584.01 520.13 489.29 419.14 358.99 563.64 647.61 716.01 510.15 543.43 441.07 404.23 299.56 394.92 394.00 376.47

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 331.61 + 158.58 – 77.95
= 412.24

The cash conversion cycle for Regeneron Pharmaceuticals, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 930.66 days from 952.69 days in Q3 2023. This trend continued from the previous quarters, where the cycle had been on the rise since Q1 2022.

Throughout 2022, the company managed to significantly decrease its cash conversion cycle, reaching its lowest point of 415.94 days in Q1 2022. However, this trend reversed in Q2 2022, and the cycle began to increase steadily.

The average cash conversion cycle for 2023 was notably higher compared to the average cycle in 2022. This indicates that Regeneron Pharmaceuticals, Inc. took longer to convert its investments in inventory and other resources back into cash during 2023.

Overall, the increasing trend in the cash conversion cycle since 2022 suggests potential challenges in managing working capital efficiently and converting sales into cash. It is important for the company to closely monitor and improve its cash conversion cycle to ensure operational efficiency and sustainable cash flow management.


Peer comparison

Dec 31, 2023


See also:

Regeneron Pharmaceuticals Inc Cash Conversion Cycle (Quarterly Data)