United Therapeutics Corporation (UTHR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 186.09 | 158.47 | 253.78 | 279.49 | 292.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 186.09 | 158.47 | 253.78 | 279.49 | 292.07 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 186.09 + — – —
= 186.09
The cash conversion cycle for United Therapeutics Corporation has shown a decreasing trend over the years, indicating an improvement in the company's efficiency in managing its working capital.
As of December 31, 2020, the cash conversion cycle was 292.07 days, which decreased to 279.49 days by December 31, 2021, and further improved to 253.78 days by December 31, 2022. The most significant improvement was observed by December 31, 2023, with the cash conversion cycle decreasing to 158.47 days. However, by December 31, 2024, there was a slight increase in the cash conversion cycle to 186.09 days.
Overall, the decreasing trend in the cash conversion cycle indicates that United Therapeutics Corporation has been more effective in managing its cash flow, accounts receivable, and inventory turnover, which ultimately leads to a shorter cash conversion cycle and better liquidity management. This trend suggests that the company is becoming more efficient in converting its investments in inventory and receivables into cash.
Peer comparison
Dec 31, 2024