Repligen Corporation (RGEN)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 115.36 | 141.96 | 134.25 | 114.35 | 84.95 |
| Days of sales outstanding (DSO) | days | 72.61 | 52.99 | 65.15 | 73.58 | 62.44 |
| Number of days of payables | days | 11.15 | 16.42 | 26.34 | 20.31 | 17.70 |
| Cash conversion cycle | days | 176.82 | 178.54 | 173.06 | 167.62 | 129.69 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 115.36 + 72.61 – 11.15
= 176.82
The cash conversion cycle of Repligen Corp. has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle was 259.43 days, which was a slight improvement compared to 2022 (275.34 days) but higher than the cycles in 2021 (257.72 days) and 2020 (253.24 days). However, it represents a significant increase from 2019 where the cycle was 192.01 days.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A higher number indicates a longer period for the company to recover its costs and receive cash from its sales.
The increasing trend in Repligen Corp.'s cash conversion cycle from 2019 to 2023 suggests potential inefficiencies in managing its inventory, receivables, and payables. It may indicate challenges in effectively managing working capital and could lead to increased financing costs or liquidity constraints for the company.
Further analysis and comparison with industry benchmarks could provide additional insights into Repligen Corp.'s working capital management efficiency and help in identifying areas for improvement to optimize its cash conversion cycle.
Peer comparison
Dec 31, 2023