ANGI Homeservices Inc (ANGI)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 46.56 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 13.12 | 11.29 | 15.71 | 18.73 | 16.41 | 21.81 | 17.84 | 16.78 | 18.23 | 13.89 | 20.14 | 23.90 | 21.05 | 18.27 | 22.08 | 14.54 | 13.75 | 10.73 | 13.20 | 13.00 |
| Number of days of payables | days | 180.21 | 82.12 | 113.70 | 63.49 | 80.82 | 74.90 | 94.14 | 47.29 | 29.71 | 25.32 | 41.89 | 35.47 | 55.64 | 43.52 | 52.65 | 87.30 | 66.36 | 64.89 | 116.21 | 162.74 |
| Cash conversion cycle | days | -167.09 | -70.82 | -98.00 | 1.79 | -64.41 | -53.09 | -76.30 | -30.51 | -11.47 | -11.44 | -21.76 | -11.57 | -34.58 | -25.25 | -30.57 | -72.76 | -52.62 | -54.16 | -103.01 | -149.74 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 13.12 – 180.21
= -167.09
The analysis of ANGI Homeservices Inc's cash conversion cycle (CCC) over the specified period reveals significant fluctuations, reflecting underlying changes in operational efficiency, working capital management, and industry dynamics.
From June 30, 2020, through December 31, 2022, the CCC remained consistently negative, indicating that the company was able to generate cash from its operations before paying its suppliers, thus implying strong working capital management and rapid cash inflow relative to cash outflows. The negative values fluctuated within a relatively narrow range, from approximately -149.74 days down to around -11.44 days, suggesting a generally favorable position where receivables collection and payables deferral strategies effectively minimize the cash conversion period.
However, starting in the first quarter of 2023, the CCC experienced a marked deterioration. The negative cycle widened significantly, reaching as low as -98.00 days in September 2024 before improving somewhat to -70.82 days in December 2024 and then worsening again to -167.09 days by March 2025. During this period, the cycle's swing into positive territory occurred briefly, notably at June 2024, when the CCC shifted to +1.79 days, indicating a short-term reversal where the company took longer to convert resources into cash, or faced delays in receivables or accelerated payables.
These trends suggest that the company’s ability to efficiently manage its working capital has weakened over time, with periods of increased latency in converting sales into cash. The extreme negative values observed towards the end of the data set imply either an increase in receivables collection time, a change in supplier payment terms, or shifts in operational strategies—possibly due to market, industry, or internal factors—that affected liquidity cycles.
Overall, the data indicates a historical pattern of robust cash conversion cycles characterized by effective receivables and payables management, which deteriorated in recent periods, culminating in a complex and volatile cycle pattern. This trajectory warrants further investigation into the underlying operational changes, customer payment behaviors, supplier credit terms, and strategic adjustments to assess the future sustainability of the cash cycle improvements.
Peer comparison
Mar 31, 2025