Celsius Holdings Inc (CELH)
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 | 39.88 | 122.19 | 165.26 | 375.04 | 96.30 |
| Days of sales outstanding (DSO) | days | 70.84 | 51.52 | 37.02 | 48.00 | 47.11 |
| Number of days of payables | days | 12.55 | 22.83 | 34.57 | 70.25 | 62.03 |
| Cash conversion cycle | days | 98.16 | 150.87 | 167.71 | 352.79 | 81.38 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 39.88 + 70.84 – 12.55
= 98.16
Celsius Holdings Inc's cash conversion cycle has shown fluctuations over the past five years. As of December 31, 2020, the company had a relatively efficient cash conversion cycle of 81.38 days, indicating that it took about 81 days to convert its investments in inventory and other resources back into cash.
However, by December 31, 2021, the cash conversion cycle had significantly increased to 352.79 days, suggesting a prolonged period for Celsius Holdings Inc to convert its investments into cash. This substantial increase may indicate challenges in managing inventory, collecting receivables, or paying creditors efficiently.
The company made improvements in the following years, with the cash conversion cycle decreasing to 167.71 days by December 31, 2022, further dropping to 150.87 days by December 31, 2023, and then to 98.16 days by December 31, 2024. These reductions suggest a more favorable trend towards efficiency in managing working capital and liquidity.
Overall, the fluctuation in Celsius Holdings Inc's cash conversion cycle indicates varying levels of effectiveness in managing cash flows and working capital over the five-year period. The company's ability to optimize its cash conversion cycle is crucial for maintaining financial stability and supporting its operations.
Peer comparison
Dec 31, 2024