TG Therapeutics Inc (TGTX)
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 | 209.13 | 174.33 | 182.77 | 194.48 | 108.50 | 104.08 | 115.38 | 128.09 | — | — | — | 12.24 | — | — | — | 21.77 | — | — | — | — |
| Days of sales outstanding (DSO) | days | 143.32 | 161.00 | 89.60 | 84.63 | 83.87 | 79.34 | 338.10 | 497.14 | — | — | 4.61 | 41.66 | 75.79 | 114.65 | 140.77 | 310.27 | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 352.45 | 335.34 | 272.38 | 279.11 | 192.38 | 183.42 | 453.48 | 625.23 | 0.00 | 0.00 | 4.61 | 53.90 | 75.79 | 114.65 | 140.77 | 332.04 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 209.13 + 143.32 – —
= 352.45
The cash conversion cycle of TG Therapeutics Inc has exhibited significant fluctuations over the periods analyzed. From March 31, 2020, to June 30, 2022, the company managed to maintain a very efficient cash conversion cycle, consistently at 0.00 days, indicating a quick turnover of cash throughout its operating cycle. However, this changed drastically in the subsequent periods, with the cycle increasing to as high as 625.23 days by March 31, 2023, before fluctuating to lower levels in the following quarters.
These fluctuations suggest potential challenges in managing the company's working capital efficiently, impacting its ability to convert its investments in inventory and accounts receivable into cash. The spike in the cash conversion cycle could indicate delays in collecting receivables or managing inventory levels, leading to cash flow constraints.
The company should closely monitor and analyze the factors contributing to these fluctuations in the cash conversion cycle to mitigate any adverse effects on its liquidity position and overall financial performance. Implementing strategies to streamline operations, enhance inventory management, and improve receivables collection could help in stabilizing the cash conversion cycle and ensuring a healthier cash flow position for TG Therapeutics Inc.
Peer comparison
Dec 31, 2024