Vicor Corporation (VICR)
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 | 136.06 | 127.56 | 128.13 | 127.62 | 121.42 | 118.05 | 111.36 | 104.11 | 98.00 | 95.38 | 85.74 | 83.56 | 91.52 | 97.17 | 95.90 | 94.94 | 88.58 | 87.11 | 95.17 | 87.79 |
| Days of sales outstanding (DSO) | days | 46.41 | 54.39 | 56.04 | 54.21 | 59.47 | 27.61 | 27.43 | 26.73 | 27.95 | 52.67 | 57.84 | 53.97 | 50.36 | 54.40 | 65.89 | 57.67 | 52.81 | 53.27 | 50.05 | 52.19 |
| Number of days of payables | days | 15.45 | 17.26 | 18.42 | 19.95 | 26.59 | 30.04 | 42.95 | 31.82 | 30.84 | 27.60 | 33.14 | 25.20 | 22.57 | 19.90 | 26.97 | 23.92 | 16.22 | 18.11 | 18.87 | 19.02 |
| Cash conversion cycle | days | 167.03 | 164.69 | 165.75 | 161.88 | 154.30 | 115.63 | 95.84 | 99.03 | 95.10 | 120.46 | 110.44 | 112.32 | 119.31 | 131.68 | 134.82 | 128.69 | 125.18 | 122.27 | 126.35 | 120.95 |
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 for Vicor Corp. has shown fluctuations over the past eight quarters. The table illustrates a trend where the cash conversion cycle has been on the rise, reaching its peak at 219.74 days in Q4 2023 compared to its lowest point of 148.69 days in Q2 2022. This indicates that the company takes longer to convert its investments in inventory and other resources into cash receipts from sales.
Overall, the increasing trend in the cash conversion cycle suggests inefficiencies in managing the company's working capital. This could potentially be attributed to slower inventory turnover or longer accounts receivable collection periods. It is essential for Vicor Corp. to closely monitor and improve its cash conversion cycle to enhance liquidity, reduce financing costs, and optimize operational performance.
Peer comparison
Dec 31, 2023