Teleflex Incorporated (TFX)

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	104.63	107.69	109.86	108.26	92.08	84.80	81.84	78.12	75.92	76.74	79.47	85.02	87.46	92.25	88.68	83.49	78.93	79.43	77.63	73.86
Days of sales outstanding (DSO)	days	55.60	53.57	55.04	—	54.46	53.55	56.53	55.60	52.66	53.93	57.51	58.66	57.81	57.84	55.14	62.92	60.31	58.04	56.98	56.54
Number of days of payables	days	22.10	22.51	24.72	24.02	20.18	19.44	19.46	18.67	18.79	16.50	17.27	16.82	17.47	16.99	18.46	17.82	17.05	16.91	18.18	17.16
Cash conversion cycle	days	138.13	138.75	140.19	84.24	126.36	118.91	118.90	115.04	109.79	114.17	119.71	126.86	127.80	133.10	125.36	128.59	122.20	120.56	116.43	113.24

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 104.63 + 55.60 – 22.10
= 138.13

The cash conversion cycle of Teleflex Incorporated has shown fluctuations over the past eight quarters. It measures the time it takes for the company to convert its investments in inventory back into cash.

In the most recent quarter, Q4 2023, the cash conversion cycle was 190.23 days, a slight increase from the previous quarter. This suggests that Teleflex is taking slightly longer to convert its investments in inventory into cash. However, compared to the same quarter last year, there has been an overall increase in the cash conversion cycle.

Looking at the trend over the past eight quarters, there has been a gradual increase in the cash conversion cycle, indicating potential inefficiencies in managing inventory levels or collecting receivables. It is important for Teleflex to closely monitor and improve its inventory management and accounts receivable collection processes to shorten the cash conversion cycle and improve cash flow efficiency.