ANGI Homeservices Inc (ANGI)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 11.29 | 13.73 | 13.89 | 18.27 | 10.73 |
| Number of days of payables | days | 116.13 | 171.96 | 25.32 | 43.52 | 64.89 |
| Cash conversion cycle | days | -104.83 | -158.23 | -11.44 | -25.25 | -54.16 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 11.29 – 116.13
= -104.83
The cash conversion cycle (CCC) of ANGI Homeservices Inc over the period from December 31, 2020, to December 31, 2024, has exhibited notable fluctuations, with a consistent trend towards more negative values. At the end of 2020, the CCC was recorded at -54.16 days, indicating that the company's cash inflows from operations were generated approximately 54 days before the outflows associated with the company's operations. This negative cycle persisted into 2021 and 2022, with the CCC improving to -25.25 days and -11.44 days, respectively, suggesting a narrowing of the lead time between cash receipts and payments during this period.
However, a significant shift occurred by the end of 2023, when the CCC sharply increased to -158.23 days. This implies that, during 2023, ANGI Homeservices managed to generate cash inflows roughly 158 days prior to related outflows, marking an expansion in the efficiency of cash collection relative to payments. Contrastingly, by the end of 2024, the CCC decreased to -104.83 days, indicating a partial reversal of this previous improvement, yet continuing to maintain a highly negative cycle.
Throughout this period, the persistent negative values of the CCC suggest that the company maintained a cash advantage, collecting receivables well before settling payables. The notable fluctuations, particularly the sharp increase in 2023 and subsequent partial retreat in 2024, reflect possible changes in operational efficiency, receivables collection policies, payables management, or shifts in the company's working capital cycle. The overall trend indicates that ANGI Homeservices has been able to sustain a cash conversion cycle predominantly in negative territory, thereby potentially reducing working capital requirements and increasing liquidity flexibility, although the variability signals periods of significant operational adjustments.
Peer comparison
Dec 31, 2024