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Zealand Pharma AS (LTS:0NZU) Cash Conversion Cycle : -2,300.50 (As of Jun. 2024)


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What is Zealand Pharma AS Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Zealand Pharma AS's Days Sales Outstanding for the three months ended in Jun. 2024 was 27.49.
Zealand Pharma AS's Days Inventory for the three months ended in Jun. 2024 was 17.89.
Zealand Pharma AS's Days Payable for the three months ended in Jun. 2024 was 2345.88.
Therefore, Zealand Pharma AS's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2024 was -2,300.50.


Zealand Pharma AS Cash Conversion Cycle Historical Data

The historical data trend for Zealand Pharma AS's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zealand Pharma AS Cash Conversion Cycle Chart

Zealand Pharma AS Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -39,443.65 44.88 -2,214.10 472.24 -4,056.17

Zealand Pharma AS Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 957.47 -3,511.28 -672.19 -4,740.76 -2,300.50

Competitive Comparison of Zealand Pharma AS's Cash Conversion Cycle

For the Biotechnology subindustry, Zealand Pharma AS's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Zealand Pharma AS's Cash Conversion Cycle Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Zealand Pharma AS's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Zealand Pharma AS's Cash Conversion Cycle falls into.



Zealand Pharma AS Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Zealand Pharma AS's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=126.7+87.77-4270.64
=-4,056.17

Zealand Pharma AS's Cash Conversion Cycle for the quarter that ended in Jun. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=27.49+17.89-2345.88
=-2,300.50

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Zealand Pharma AS  (LTS:0NZU) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Zealand Pharma AS Cash Conversion Cycle Related Terms

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Zealand Pharma AS Business Description

Address
Sydmarken 11, Soborg, DNK, DK-2860
Zealand Pharma AS is a biotechnology company. It is focused on the discovery, design, and development of peptide-based medicines. The company's product pipeline includes three product candidates in clinical development: glepaglutide, which is being developed to treat short bowel syndrome or SBS; dasiglucagon formulated for use in a dual-hormone artificial pancreas system for diabetes management; and dasiglucagon for use in the treatment of congenital hyperinsulinism. The company has out-licensed a peptide program to Boehringer Ingelheim that has been moved ahead into early clinical development: a once-weekly novel dual-acting GLP-1/glucagon agonist for the treatment of obesity and/or Type 2 diabetes.

Zealand Pharma AS Headlines

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