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 | ||
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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)