STAAR Surgical Company (STAA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 0.21 | 203.01 | 207.40 | 200.83 | 183.80 | 165.57 | 138.02 | 161.01 | 144.55 | 119.73 | 113.39 | 124.34 | 121.64 | 121.75 | 116.89 | 132.41 | 146.58 | 153.14 | 157.81 | 159.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.21 | 203.01 | 207.40 | 200.83 | 183.80 | 165.57 | 138.02 | 161.01 | 144.55 | 119.73 | 113.39 | 124.34 | 121.64 | 121.75 | 116.89 | 132.41 | 146.58 | 153.14 | 157.81 | 159.27 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 0.21 + — – —
= 0.21
The cash conversion cycle for STAAR Surgical Company has shown fluctuations over the period analyzed. The company's cash conversion cycle decreased from 159.27 days as of March 31, 2020, to 113.39 days as of June 30, 2022, indicating an improvement in managing its cash flow and working capital.
However, the trend reversed in the later periods, with the cash conversion cycle increasing to 207.40 days as of June 30, 2024. This significant increase suggests potential challenges in managing the company's cash flow efficiently and converting its investments into cash.
The sudden drop to 0.21 days as of December 31, 2024 seems unusual and may be an anomaly in the data. It is important for stakeholders to investigate this anomaly further to understand the underlying reasons for such a drastic change in the cash conversion cycle.
Overall, monitoring the cash conversion cycle is crucial for assessing a company's liquidity and operational efficiency. STAAR Surgical Company should focus on optimizing its cash conversion cycle to ensure effective management of working capital and sustainable business operations.
Peer comparison
Dec 31, 2024