Bio-Techne Corp (TECH)

Cash conversion cycle

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Days of inventory on hand (DOH) days 161.05 168.50 170.76 147.55 142.91
Days of sales outstanding (DSO) days 61.91 76.02 70.15 64.23 57.00
Number of days of payables days 21.52 35.59 25.55 35.41 35.97
Cash conversion cycle days 201.44 208.92 215.36 176.37 163.94

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 161.05 + 61.91 – 21.52
= 201.44

The cash conversion cycle (CCC) of Bio-Techne Corp has exhibited a general upward trend over the analyzed period, with specific fluctuations observed between 2021 and 2025. As of June 30, 2021, the company’s CCC was approximately 163.94 days, indicating the average time span from cash outflow to cash inflow related to operating activities. By June 30, 2022, the CCC had increased to approximately 176.37 days, reflecting a lengthening in the cycle, which persisted through June 30, 2023, when the CCC reached around 215.36 days. This represents a substantial increase of about 38.99 days from the previous year, signaling a significant elongation in the company's working capital management or changes in operational efficiency.

Subsequently, the CCC demonstrated a slight reduction by June 30, 2024, decreasing to approximately 208.92 days, and further declining slightly to about 201.44 days by June 30, 2025. Despite this decline, the cycle remained substantially longer than the initial 2021 measurement.

Overall, the trend suggests that Bio-Techne Corp has experienced increasing delays in converting its investments into cash flows over the observed period, culminating in a peak around mid-2023. The gradual reduction thereafter indicates some operational adjustments or improvements in working capital management, but the cash conversion cycle remains notably prolonged compared to the beginning of the period. This extended cycle can impact the company’s liquidity position and working capital requirements, implying a potential need to scrutinize inventory management, receivables collection, and payables practices.