Sarepta Therapeutics Inc (SRPT)
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 | 229.38 | 163.73 | 236.12 | 265.80 | 218.98 |
| Days of sales outstanding (DSO) | days | 118.32 | 85.26 | 79.56 | 68.49 | 87.10 |
| Number of days of payables | days | 117.17 | 76.96 | 97.31 | 127.29 | 87.01 |
| Cash conversion cycle | days | 230.53 | 172.03 | 218.37 | 206.99 | 219.07 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 229.38 + 118.32 – 117.17
= 230.53
The cash conversion cycle of Sarepta Therapeutics Inc has exhibited fluctuations over the past five years. In 2023, the cash conversion cycle increased to 230.53 days from 172.03 days in 2022. This indicates that the company took longer to convert its investments in inventory into cash receipts from customers. Comparing to previous years, the cycle was longer in 2021 at 218.37 days, decreased in 2020 to 206.99 days, and increased in 2019 to 219.07 days.
The prolonged cash conversion cycle in 2023 could be a result of inefficiencies in managing inventory, collecting receivables, or managing payables. It is essential for Sarepta Therapeutics Inc to analyze the factors contributing to the extended cycle to optimize working capital efficiency and improve overall cash flow management.
Peer comparison
Dec 31, 2023