STAAR Surgical Company (STAA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 212.68 | 183.80 | 144.55 | 121.64 | 146.58 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 212.68 | 183.80 | 144.55 | 121.64 | 146.58 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 212.68 + — – —
= 212.68
STAAR Surgical Company's cash conversion cycle has fluctuated over the years. In December 31, 2020, the cash conversion cycle was 146.58 days, and it decreased to 121.64 days by December 31, 2021, suggesting an improvement in the company's efficiency in managing its cash flow. However, the cycle increased to 144.55 days by December 31, 2022, and further to 183.80 days by December 31, 2023, indicating a deterioration in cash conversion efficiency.
By December 31, 2024, the cash conversion cycle had extended to 212.68 days, signifying a significant delay in converting investments in inventory and other resources into cash receipts from sales. This could reflect challenges in managing working capital efficiently or potential issues in inventory management or collection of receivables.
Overall, the company may need to focus on optimizing its cash conversion cycle to ensure a healthy balance between inventory management, accounts receivable, and accounts payable to enhance liquidity and operational efficiency.
Peer comparison
Dec 31, 2024