Thermo Fisher Scientific Inc (TMO)

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	72.43	79.33	76.32	74.98	73.42	76.99	80.25	80.64	80.91	87.01	92.82	96.99	97.15	96.57	93.40	93.75	93.59	96.28	96.24	90.62
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	72.43	79.33	76.32	74.98	73.42	76.99	80.25	80.64	80.91	87.01	92.82	96.99	97.15	96.57	93.40	93.75	93.59	96.28	96.24	90.62

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.43 + — – —
= 72.43

Thermo Fisher Scientific Inc's cash conversion cycle has shown some fluctuations over the years. The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has ranged from 80.25 days to 97.15 days during the period from March 31, 2020, to December 31, 2024.

The company's cash conversion cycle peaked at 97.15 days on December 31, 2021, indicating a longer duration for converting investments into cash. Subsequently, the cycle decreased to a low of 72.43 days by December 31, 2024, showcasing an improvement in efficiency in managing inventory and collecting receivables.

Overall, Thermo Fisher Scientific Inc has seen fluctuations in its cash conversion cycle, but the decreasing trend towards the end of the period suggests better management of working capital and improved efficiency in the conversion process. This indicates a positive trend in the company's operations and financial performance in terms of working capital management.