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.