Vicor Corporation (VICR)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 136.06 | 121.42 | 98.00 | 91.52 | 88.58 |
| Days of sales outstanding (DSO) | days | 46.41 | 59.62 | 27.97 | 25.19 | 26.41 |
| Number of days of payables | days | 15.45 | 26.59 | 30.84 | 22.57 | 16.22 |
| Cash conversion cycle | days | 167.03 | 154.45 | 95.12 | 94.14 | 98.78 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 136.06 + 46.41 – 15.45
= 167.03
The cash conversion cycle of Vicor Corp. has shown an increasing trend over the past five years, indicating a lengthening period for the company to convert its resources invested in inventory into cash received from sales.
In 2023, the cash conversion cycle reached 219.74 days, the highest level in five years, reflecting a slowdown in the conversion of inventory into cash. This may suggest inefficiencies in managing inventory, collection of receivables, or the payment of payables.
Comparing to the previous years, the company's cash conversion cycle was 192.14 days in 2022, 148.91 days in 2021, 145.83 days in 2020, and 157.65 days in 2019. Although the cycle fluctuated over the years, the general upward trend from 2019 to 2023 indicates a potential need for Vicor Corp. to focus on optimizing its working capital management to improve cash flow efficiency.
Peer comparison
Dec 31, 2023