Supernus Pharmaceuticals Inc (SUPN)

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	49.31	78.95	80.05	87.05	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
Days of sales outstanding (DSO)	days	78.36	81.10	87.99	90.04	86.61	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
Number of days of payables	days	4.17	7.89	5.44	16.69	2.23	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
Cash conversion cycle	days	123.50	152.17	162.61	160.39	172.39	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

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 measures the time it takes for a company to convert its resources (inventories, accounts receivable, and accounts payable) into cash flows. For Supernus Pharmaceuticals Inc, the cash conversion cycle has fluctuated over the years:

1. The trend from March 31, 2020, to December 31, 2021, showed some variation, with values ranging from 142.51 days to 170.20 days. This suggests some inconsistency in managing the company's cash conversion cycle efficiency during this period.

2. Notably, there was a significant improvement in the cash conversion cycle from June 30, 2022, to December 31, 2024, with values decreasing gradually from 134.18 days to 123.50 days. This downward trend indicates a more efficient use of resources to generate cash inflows.

3. However, the cycle increased slightly from March 31, 2023, to December 31, 2024, with values ranging from 139.74 days to 162.61 days. This increase might signal potential challenges in managing inventories, accounts receivable, and accounts payable effectively during this time frame.

Overall, the company's cash conversion cycle has shown some variability, but the recent improvement in efficiency is a positive sign. Continuous monitoring and optimization of this cycle can help Supernus Pharmaceuticals Inc enhance its cash flow management and operational effectiveness in the future.