Veracyte Inc (VCYT)

Cash conversion cycle

Jun 30, 2025 Mar 31, 2025 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
Days of inventory on hand (DOH) days 58.31 57.16 50.82 50.61 51.08 51.99 49.65 52.54 38.84 46.65 51.36 51.58 57.14 52.69 55.07 57.18 47.36 55.33 41.00 40.27
Days of sales outstanding (DSO) days 38.71 42.36 38.10 41.88 45.95 45.36 40.82 41.80 47.05 53.36 54.18 51.57 55.02 61.88 68.94 78.80 73.86 82.68 57.36 57.11
Number of days of payables days 26.68 37.02 20.17 24.03 32.05 34.47 39.84 41.45 43.28 54.89 42.80 41.55 40.42 48.01 60.64 65.20 60.12 62.60 27.44 17.46
Cash conversion cycle days 70.34 62.50 68.74 68.46 64.98 62.88 50.62 52.90 42.61 45.12 62.75 61.61 71.73 66.56 63.37 70.78 61.10 75.41 70.92 79.92

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 58.31 + 38.71 – 26.68
= 70.34

The data indicates that Veracyte Inc's cash conversion cycle (CCC) has experienced fluctuations over the analyzed period, reflecting variations in the company's operational efficiency and working capital management. Starting from a high of approximately 79.92 days as of September 30, 2020, the CCC generally trended downward, reaching a low point of 42.61 days on June 30, 2023. This decline suggests improvements in the company's ability to convert its investments in inventory and receivables into cash more rapidly.

Notably, the most significant reduction occurred between September 30, 2022, and June 30, 2023, where the CCC decreased from 61.61 days to 42.61 days, indicating enhanced efficiency. This improvement could be attributed to faster collection of receivables, more effective inventory management, or extended payables periods. The subsequent period from September 30, 2023, to December 31, 2023, shows a slight increase to 50.62 days, which may reflect short-term operational adjustments or seasonal factors.

In the most recent period ending June 30, 2025, the CCC shows an upward trend again, reaching approximately 70.34 days, suggesting a possible slowdown in cash conversion efficiency or shifts in working capital strategies. Overall, the company's cash conversion cycle demonstrates a pattern of improvement over time, with periods of fluctuation, indicative of ongoing efforts to optimize liquidity management and operational processes.