Regenxbio Inc (RGNX)

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	—	33.30	40.49	41.40	34.62	36.54	38.46	45.53	51.38	60.44	42.70	48.61	38.74	61.36	50.97	41.73	40.83	46.28	45.25	55.11
Days of sales outstanding (DSO)	days	105.72	114.28	94.21	76.69	114.56	30.02	32.24	22.79	26.51	124.66	58.83	54.80	57.89	170.51	164.24	228.39	313.50	95.32	64.41	35.12
Number of days of payables	days	60.29	57.95	31.19	62.11	67.78	62.15	40.21	60.67	31.20	65.18	30.51	39.73	39.17	58.05	56.99	50.65	40.42	64.26	43.87	36.82
Cash conversion cycle	days	45.43	89.63	103.52	55.99	81.40	4.42	30.49	7.65	46.69	119.91	71.02	63.68	57.46	173.81	158.22	219.47	313.91	77.34	65.80	53.41

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 105.72 – 60.29
= 45.43

Regenxbio Inc's cash conversion cycle (CCC) measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales. A negative CCC indicates that Regenxbio is able to generate cash from its operational activities before having to pay its suppliers.

The trend analysis of the cash conversion cycle reveals fluctuations over the past quarters. In Q4 2023, the CCC improved significantly, reaching -123.23 days, compared to -106.66 days in Q3 2023. This indicates that Regenxbio was able to convert its investments into cash more efficiently during this period.

However, this positive trend was preceded by a spike in the CCC in Q2 2023, reaching -28.48 days, representing a decrease in efficiency compared to Q1 2023, which had a CCC of -135.51 days. This suggests there may have been delays in converting investments into cash during that quarter.

Looking back further, Q4 2022 also showed a relatively lower efficiency in conversion with a CCC of -91.17 days. This was followed by a similar trend in Q1 2022, with a CCC of -129.41 days.

Overall, Regenxbio's cash conversion cycle has experienced fluctuations over the quarters, reflecting variations in the company's ability to efficiently convert its investments into cash flow. The negative values indicate that the company is efficiently managing its working capital and can generate cash from its operational activities swiftly.