Supernus Pharmaceuticals Inc (SUPN)

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	88.01	72.76	72.67	71.09	71.48	62.06	70.26	78.19	82.04	64.52	65.31	63.61	68.18	69.94	67.63	49.75	55.01	50.85	51.93	53.28
Days of sales outstanding (DSO)	days	—	83.54	77.74	77.66	89.75	91.96	93.33	90.44	97.06	89.52	90.85	86.43	101.48	104.40	110.39	108.16	81.16	77.52	75.45	72.24
Number of days of payables	days	—	2.95	3.53	9.00	8.23	11.95	29.41	10.85	8.91	9.79	8.09	7.54	8.67	18.44	10.55	6.36	20.95	6.16	8.14	14.55
Cash conversion cycle	days	88.01	153.35	146.88	139.74	153.00	142.07	134.18	157.78	170.20	144.25	148.07	142.51	160.99	155.90	167.46	151.54	115.22	122.20	119.23	110.97

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.01 + — – —
= 88.01

The cash conversion cycle of Supernus Pharmaceuticals Inc has fluctuated over the past eight quarters, spanning from Q1 2022 to Q4 2023. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

The cycle has varied from a high of 445.77 days in Q1 2022 to a low of 336.70 days in Q2 2022, indicating fluctuations in the efficiency of managing working capital. A longer cash conversion cycle may suggest that the company is taking longer to sell its inventory or collect receivables, tying up more cash in the process.

Overall, the trend has been somewhat erratic, with ups and downs in different quarters. A sustained high cash conversion cycle could indicate potential cash flow issues, while a decreasing cycle might suggest improvements in inventory management and sales collections. Further analysis is needed to determine the underlying factors driving these changes in the cash conversion cycle and their implications for the company's financial performance and liquidity.