Supernus Pharmaceuticals Inc (SUPN)
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 | 49.31 | — | 71.48 | 82.04 | 68.52 |
| Days of sales outstanding (DSO) | days | 78.36 | 86.61 | 89.75 | 97.06 | 102.64 |
| Number of days of payables | days | 4.17 | — | 8.23 | 8.91 | 8.72 |
| Cash conversion cycle | days | 123.50 | 86.61 | 153.00 | 170.20 | 162.44 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 49.31 + 78.36 – 4.17
= 123.50
The cash conversion cycle of Supernus Pharmaceuticals Inc has shown variations over the years. As of December 31, 2020, the company had a cash conversion cycle of 162.44 days, indicating that it took approximately 162 days for the company to convert its investments in inventory and other resources into cash. By December 31, 2021, this cycle extended to 170.20 days, showing a slight increase in the time taken for cash conversion.
Subsequently, there was a noticeable improvement in efficiency as the cash conversion cycle decreased to 153.00 days by December 31, 2022. However, a significant reduction was observed by December 31, 2023, with the cycle decreasing to 86.61 days, reflecting a more efficient management of working capital.
Nevertheless, by December 31, 2024, the cash conversion cycle increased again to 123.50 days. This fluctuation may indicate changes in the company's operations, sales patterns, inventory management, or payment terms with suppliers and customers. Overall, monitoring the cash conversion cycle helps understand how effectively the company is managing its working capital and converting investments into cash.
Peer comparison
Dec 31, 2024