Celsius Holdings Inc (CELH)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 122.19 | 165.26 | 375.04 | 96.30 | 127.30 |
| Days of sales outstanding (DSO) | days | 51.52 | 37.02 | 48.00 | 47.11 | 43.50 |
| Number of days of payables | days | 22.83 | 34.57 | 70.25 | 62.03 | 84.58 |
| Cash conversion cycle | days | 150.87 | 167.71 | 352.79 | 81.38 | 86.22 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 122.19 + 51.52 – 22.83
= 150.87
The cash conversion cycle of Celsius Holdings Inc has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 150.23 days from 166.05 days in 2022, indicating an improvement in efficiency in converting its investments in inventory and accounts receivable into cash. This shorter cash conversion cycle suggests that Celsius Holdings Inc was able to manage its working capital more effectively in 2023.
Comparing to the previous years, the company experienced a significant decrease in the cash conversion cycle from 349.78 days in 2021 to 76.12 days in 2020. This substantial improvement suggests that Celsius Holdings Inc implemented successful strategies to streamline its cash conversion process, enhancing its liquidity and financial position in 2020.
Furthermore, a slight increase in the cash conversion cycle from 80.49 days in 2019 to 76.12 days in 2020 indicates that the company's efficiency in managing its working capital slightly deteriorated during this period. However, the overall trend in recent years shows that Celsius Holdings Inc has been able to optimize its cash conversion cycle, reflecting improved operational efficiency and effective management of its cash flows.
Peer comparison
Dec 31, 2023