United Therapeutics Corporation (UTHR)
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 | 186.09 | 175.67 | 170.74 | 157.76 | 158.47 | 157.05 | 179.97 | 213.66 | 250.37 | 260.71 | 278.32 | 256.72 | 279.49 | 287.66 | 275.74 | 312.47 | 292.07 | 314.24 | 294.69 | 300.09 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 186.09 | 175.67 | 170.74 | 157.76 | 158.47 | 157.05 | 179.97 | 213.66 | 250.37 | 260.71 | 278.32 | 256.72 | 279.49 | 287.66 | 275.74 | 312.47 | 292.07 | 314.24 | 294.69 | 300.09 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 186.09 + — – —
= 186.09
United Therapeutics Corporation's cash conversion cycle has shown varying trends over the past few years. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash from sales.
From March 31, 2020, where the cash conversion cycle was 300.09 days, there was a fluctuation reaching a peak of 314.24 days on September 30, 2020, before gradually decreasing to 250.37 days by December 31, 2022. This downward trend continued into the next reporting periods, with the cycle reaching its lowest point of 157.05 days on September 30, 2023.
However, the cycle increased slightly to 186.09 days by December 31, 2024. Overall, the trend indicates that the company has been focusing on managing its working capital more efficiently in recent periods. A lower cash conversion cycle typically signifies that the company is able to generate cash more quickly from its operating activities, which can be a positive sign for its financial health and liquidity. It is essential for investors and stakeholders to closely monitor these trends to assess the company's operational efficiency and cash flow management.
Peer comparison
Dec 31, 2024