Bio-Techne Corp (TECH)

Cash conversion cycle

Jun 30, 2025 Mar 31, 2025 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
Days of inventory on hand (DOH) days 161.05 169.11 168.11 168.07 169.44 171.26 175.38 184.28 170.75 172.71 164.71 155.35 147.55 135.99 134.51 134.53 142.91 144.61 145.74 150.47
Days of sales outstanding (DSO) days 61.91 71.61 66.51 69.69 76.02 72.06 66.13 65.27 70.15 70.30 60.22 56.89 64.23 68.53 54.20 54.70 57.00 67.93 58.59 58.92
Number of days of payables days 99.26 28.00 29.56 28.66 35.79 27.57 30.56 27.81 25.55 27.64 24.77 31.56 35.41 32.71 29.53 29.37 35.97 33.98 33.16 38.60
Cash conversion cycle days 123.70 212.71 205.06 209.09 209.67 215.75 210.95 221.74 215.36 215.37 200.16 180.68 176.37 171.81 159.18 159.86 163.94 178.56 171.16 170.80

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 161.05 + 61.91 – 99.26
= 123.70

The cash conversion cycle (CCC) of Bio-Techne Corp has exhibited notable fluctuations over the analyzed period. Starting from an approximate value of 170.80 days as of September 30, 2020, the CCC remained relatively stable around 171 days through December 31, 2020, and showed an upward trend into the first quarter of 2021, reaching about 178.56 days. Subsequently, a decline was observed, with the cycle decreasing to approximately 159.86 days by September 30, 2021, indicating an improvement in operational efficiencies during this period.

However, starting in late 2021 and into 2022, the CCC demonstrated a steady increase, reaching 200.16 days by December 31, 2022, and continuing to rise sharply into the first quarter of 2023 at about 215.37 days. The upward trend persisted through the middle of 2023, peaking at about 221.74 days as of September 30, 2023. During this period, the extended cycle suggests increased days inventory and/or slower accounts receivable and payable turnover.

Despite a slight decrease observed in the latter part of 2024, with CCC declining to approximately 205.06 days by December 31, 2024, the cycle remained elevated compared to early periods. In 2025, a significant reduction in the CCC occurred, with the metric dropping sharply to approximately 123.70 days by June 30, 2025, reflecting a substantial enhancement in cash conversion efficiency.

Overall, the data indicates that Bio-Techne Corp experienced a general trend of increasing cash conversion cycle durations through 2023, followed by improvement in mid-2024 and a marked reduction in mid-2025. The pattern suggests periods of operational inefficiencies or strategic changes affecting inventory management, receivables, and payables, with recent efforts likely geared toward optimizing working capital and reducing the cycle length.