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United Therapeutics (United Therapeutics) Cash Conversion Cycle : 171.56 (As of Dec. 2023)


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What is United Therapeutics Cash Conversion Cycle?

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

United Therapeutics's Days Sales Outstanding for the three months ended in Dec. 2023 was 39.89.
United Therapeutics's Days Inventory for the three months ended in Dec. 2023 was 138.87.
United Therapeutics's Days Payable for the three months ended in Dec. 2023 was 7.2.
Therefore, United Therapeutics's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 171.56.


United Therapeutics Cash Conversion Cycle Historical Data

The historical data trend for United Therapeutics'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.

United Therapeutics Cash Conversion Cycle Chart

United Therapeutics 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 291.67 318.07 295.40 265.70 183.81

United Therapeutics Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 185.37 203.19 177.63 174.90 171.56

Competitive Comparison of United Therapeutics's Cash Conversion Cycle

For the Biotechnology subindustry, United Therapeutics'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.


United Therapeutics's Cash Conversion Cycle Distribution in the Biotechnology Industry

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

* The bar in red indicates where United Therapeutics's Cash Conversion Cycle falls into.



United Therapeutics 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.

United Therapeutics'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
=39.15+151.53-6.87
=183.81

United Therapeutics's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=39.89+138.87-7.2
=171.56

* 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.


United Therapeutics  (NAS:UTHR) 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.


United Therapeutics Cash Conversion Cycle Related Terms

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United Therapeutics (United Therapeutics) Business Description

Traded in Other Exchanges
Address
1040 Spring Street, Silver Spring, MD, USA, 20910
United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Most of the company's sales are generated within the United States. United Therapeutics also markets a pediatric oncology drug, but its focus largely remains in pulmonary arterial hypertension.
Executives
Paul A Mahon officer: EVP & General Counsel
Nilda Mesa director C/O UNITED THERAPEUTICS CORPORATION, 1040 SPRING STREET, SILVER SPRING MD 20910
Christopher Causey director
Martine A Rothblatt director, officer: Chief Executive Officer
Louis W Sullivan director
Judy D. Olian director 2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067
Michael Benkowitz officer: President and COO C/O UNITED THERAPEUTICS CORP, 1040 SPRING STREET, SILVER SPRING MD 20910
Christopher Patusky director
Raymond Dwek director
Linda Maxwell director 1040 SPRING STREET, SILVER SPRING NC 27709
Tommy G Thompson director 7711 CARONDELET, ST. LOUIS MO 63105
Katherine J Klein director STEINBERG HALL-DIETRICH HALL, 3620 LOCUST WALK, PHILADELPHIA PA 19104
Richard Giltner director C/O UNITED THERAPEUTICS CORPORTION, 1735 CONNECTICUT AVE. NW, WASHINGTON DC 20009
Roger Jeffs director, officer: President and COO
David Zaccardelli officer: EVP & Chief Operating Officer 300 TRI STATE INTERNATIONAL, SUITE 272, LINCOLNSHIRE IL 60069