STAAR Surgical Company (STAA)
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 | 367.60 | 331.14 | 276.04 | 322.03 | 289.10 | 239.45 | — | — | 243.27 | — | — | — | 293.16 | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 109.99 | 134.80 | 117.31 | 84.43 | 83.57 | 74.46 | — | — | 72.50 | — | — | — | 83.26 | — | — | — | — | — | — | — |
| Number of days of payables | days | 70.93 | 46.83 | 61.97 | 52.70 | 69.26 | 45.46 | 79.71 | 90.45 | 61.25 | 67.01 | 56.83 | 61.78 | 60.49 | 65.76 | 78.66 | 86.20 | 76.86 | 75.63 | 86.23 | 77.19 |
| Cash conversion cycle | days | 406.66 | 419.10 | 331.38 | 353.75 | 303.41 | 268.45 | -79.71 | -90.45 | 254.51 | -67.01 | -56.83 | -61.78 | 315.93 | -65.76 | -78.66 | -86.20 | -76.86 | -75.63 | -86.23 | -77.19 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 367.60 + 109.99 – 70.93
= 406.66
The cash conversion cycle of STAAR Surgical Company has shown fluctuations over the past few quarters, indicating varying efficiency in managing its working capital. A positive cash conversion cycle means that the company takes longer to convert its investments in inventory into cash from sales, leading to a need for more working capital.
From December 2022 to September 2023, the cash conversion cycle increased from 303.41 days to 419.10 days, suggesting a deterioration in the company's ability to efficiently manage its cash flow. This trend continued until December 2023, where the cycle peaked at 406.66 days.
However, there was a significant improvement in the cycle from March 2022 to June 2022 and then to September 2022, where it turned negative. A negative cash conversion cycle means that the company is able to convert its investments in inventory into cash from sales much quicker, potentially leading to a reduced need for working capital.
This improvement was short-lived as the cycle became positive again by December 2022. The company faced challenges in managing its working capital efficiently in the recent quarters, as evidenced by the overall positive cash conversion cycle.
Overall, the trend in STAAR Surgical Company's cash conversion cycle indicates fluctuations in working capital management efficiency, with periods of both improvement and deterioration. Continued attention to managing working capital effectively will be important for the company to maintain stable cash conversion cycles and optimize its financial performance.
Peer comparison
Dec 31, 2023