UnitedHealth Group Incorporated (UNH)

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	10.50	—	—	—	15.05	—	—	—	13.80	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	38.28	38.96	35.70	40.32	34.29	35.60	37.10	37.86	35.64	36.89	36.51	38.21	36.06	36.71	35.31	36.89	32.35	32.16	28.12	32.27
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	48.77	38.96	35.70	40.32	49.34	35.60	37.10	37.86	49.44	36.89	36.51	38.21	36.06	36.71	35.31	36.89	32.35	32.16	28.12	32.27

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.50 + 38.28 – —
= 48.77

The cash conversion cycle of Unitedhealth Group Inc has fluctuated over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 37.86 days, which increased to 37.10 days in Q2 2022. The cycle then peaked in Q1 2023 at 40.32 days before slightly declining in Q2 2023 to 35.70 days.

However, there was a slight increase in the cash conversion cycle in Q3 2023 to 38.96 days, followed by a decrease in Q4 2023 to 38.28 days. Overall, the company's cash conversion cycle has shown some volatility, which may indicate fluctuations in the efficiency of its working capital management. It's important for Unitedhealth Group Inc to closely monitor and optimize its cash conversion cycle to ensure effective management of cash flow and working capital.