Regenxbio Inc (RGNX)

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	—	33.22	49.53	33.16	35.17
Days of sales outstanding (DSO)	days	105.72	114.56	26.51	53.89	233.77
Number of days of payables	days	56.67	65.04	30.07	33.53	34.81
Cash conversion cycle	days	49.05	82.75	45.96	53.52	234.13

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 105.72 – 56.67
= 49.05

The cash conversion cycle for Regenxbio Inc has displayed fluctuating trends over the past five years. In 2023, the company's cash conversion cycle was -123.23 days, indicating that Regenxbio Inc was able to convert its investments in inventory and other resources back into cash efficiently within a shorter period, which may be a positive sign of effective working capital management. This represents a significant improvement compared to the previous year where the cycle was -91.17 days.

In 2022, the company continued to show a negative cash conversion cycle of -91.17 days, suggesting that Regenxbio Inc was able to generate cash flows from its operating activities before paying its suppliers, reflecting a strong liquidity position and effective management of working capital. However, there was a decrease in efficiency compared to the cycle of -58.63 days in 2021.

In 2021, the cash conversion cycle decreased to -58.63 days, implying that the company improved its ability to manage its cash flows, production, and sales effectively. This marks an improvement from the previous year where the cycle was 12.80 days, indicating that the company's operations were less efficient in converting investments into cash.

In 2020, the company experienced a positive cash conversion cycle of 12.80 days, suggesting that Regenxbio Inc took a longer time to convert its investments in inventory and other inputs into cash. This could signal potential inefficiencies in managing working capital.

In 2019, the cash conversion cycle was significantly higher at 111.34 days, indicating that Regenxbio Inc faced challenges in efficiently converting its resources into cash and managing its working capital effectively.

Overall, the fluctuating cash conversion cycle of Regenxbio Inc over the years highlights the importance of monitoring working capital efficiency and liquidity management strategies to sustain and improve the company's financial performance in the long run.