Sarepta Therapeutics Inc (SRPT)

Cash conversion cycle

		Mar 31, 2024	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
Days of inventory on hand (DOH)	days	257.17	229.52	177.52	180.87	149.88	163.73	197.05	204.98	251.69	236.11	355.90	321.02	285.83	265.80	255.91	208.79	205.34	218.98	226.17	232.22
Days of sales outstanding (DSO)	days	98.53	118.32	105.32	86.14	83.74	85.26	83.96	89.09	84.93	79.56	84.69	77.56	75.25	68.49	89.82	84.34	95.73	87.10	68.01	60.36
Number of days of payables	days	63.02	117.24	63.98	87.53	78.91	76.96	105.53	55.36	68.31	97.30	54.49	91.59	91.16	127.29	86.65	106.53	31.54	87.01	111.41	65.33
Cash conversion cycle	days	292.68	230.60	218.87	179.48	154.70	172.03	175.48	238.70	268.32	218.36	386.10	306.99	269.91	206.99	259.08	186.61	269.53	219.07	182.77	227.25

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 257.17 + 98.53 – 63.02
= 292.68

The cash conversion cycle of Sarepta Therapeutics Inc has shown fluctuating trends over the periods mentioned. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

Between December 2019 and March 2020, the cash conversion cycle increased substantially from 182.77 days to 269.53 days, indicating a potential strain on liquidity and efficiency in managing working capital. However, the company managed to reduce this cycle to 186.61 days by June 2020, suggesting improved operational performance.

From September 2020 to March 2021, the cycle decreased further to 154.70 days, which implies a more effective management of inventory, receivables, and payables. This efficiency continued to improve towards December 2021, with the cycle reaching 218.36 days.

In the most recent period of March 2024, the cash conversion cycle increased significantly to 292.68 days, signifying potential challenges in managing working capital and converting investments into cash. This rise may prompt a closer evaluation of inventory management, sales processes, and payment cycles to enhance operational efficiency and liquidity.

Overall, Sarepta Therapeutics Inc should closely monitor and optimize its cash conversion cycle to ensure effective utilization of resources and maintain healthy liquidity levels to support its operations and growth.