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Insmed (FRA:IM8N) Cash Conversion Cycle : 198.68 (As of Mar. 2025)


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What is Insmed Cash Conversion Cycle?

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

Insmed's Days Sales Outstanding for the three months ended in Mar. 2025 was 49.86.
Insmed's Days Inventory for the three months ended in Mar. 2025 was 434.19.
Insmed's Days Payable for the three months ended in Mar. 2025 was 285.37.
Therefore, Insmed's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2025 was 198.68.


Insmed Cash Conversion Cycle Historical Data

The historical data trend for Insmed'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.

Insmed Cash Conversion Cycle Chart

Insmed Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 148.43 193.42 200.42 148.37 136.80

Insmed Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 195.56 207.08 199.20 139.90 198.68

Competitive Comparison of Insmed's Cash Conversion Cycle

For the Biotechnology subindustry, Insmed'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.


Insmed's Cash Conversion Cycle Distribution in the Biotechnology Industry

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

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


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Insmed 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.

Insmed's Cash Conversion Cycle for the fiscal year that ended in Dec. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=45.94+379.96-289.1
=136.80

Insmed's Cash Conversion Cycle for the quarter that ended in Mar. 2025 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=49.86+434.19-285.37
=198.68

* 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.


Insmed  (FRA:IM8N) 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.


Insmed Cash Conversion Cycle Related Terms

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Insmed Business Description

Traded in Other Exchanges
Address
700 US Highway 202/206, Bridgewater, NJ, USA, 08807
Insmed Inc is a biopharmaceutical company transforming the lives of patients with serious and rare diseases. The company's first commercial product is ARIKAYCE (amikacin liposome inhalation suspension), approved in the US for the treatment of Mycobacterium Avium Complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. It is also developing Brensocatib, an oral reversible dipeptidyl peptidase 1 inhibitor for bronchiectasis and other neutrophil-mediated diseases, and Treprostinil Palmitil Inhalation Powder, an inhaled treprostinil prodrug for pulmonary hypertension linked to interstitial lung disease and pulmonary arterial hypertension.

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