Celsius Holdings Inc (CELH)
Cash conversion cycle
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 39.88 | 104.35 | 89.33 | 101.21 | 122.19 | 120.35 | 106.76 | 125.32 | 165.26 | 162.21 | 201.28 | 284.55 | 375.04 | 314.98 | 224.39 | 160.26 | 96.31 | 87.32 | 147.88 | 152.77 |
| Days of sales outstanding (DSO) | days | 72.44 | 55.86 | 64.70 | 52.25 | 51.52 | 69.45 | 77.11 | 82.16 | 37.02 | 75.46 | 51.96 | 72.10 | 48.00 | 68.41 | 67.99 | 63.41 | 47.11 | 56.27 | 49.60 | 48.72 |
| Number of days of payables | days | 12.55 | 16.32 | 23.45 | 20.60 | 22.83 | — | — | 13.43 | 34.57 | 29.08 | 31.33 | 78.12 | 70.25 | 105.84 | 68.59 | 80.45 | 62.03 | — | 55.31 | 81.11 |
| Cash conversion cycle | days | 99.77 | 143.89 | 130.58 | 132.86 | 150.87 | 189.80 | 183.87 | 194.05 | 167.71 | 208.59 | 221.91 | 278.53 | 352.79 | 277.55 | 223.78 | 143.22 | 81.38 | 143.59 | 142.18 | 120.38 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 39.88 + 72.44 – 12.55
= 99.77
The cash conversion cycle of Celsius Holdings Inc has shown fluctuations over the years. The company's cash conversion cycle measures the time it takes for the company to convert its investment in inventory and other resources into cash flows from sales.
From the data provided, the company's cash conversion cycle started at 120.38 days on March 31, 2020, and increased to around 352.79 days by December 31, 2021. This significant increase could indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers, which could lead to lower cash flows.
However, in the following periods, the cash conversion cycle improved to 99.77 days by December 31, 2024. This reduction suggests that the company may have become more efficient in managing its working capital, resulting in quicker conversion of investments into cash.
Overall, analyzing the trends in the cash conversion cycle can provide insights into the company's operational efficiency, liquidity, and working capital management. It is essential for Celsius Holdings Inc to continue monitoring and optimizing its cash conversion cycle to ensure healthy cash flows and sustainable operations.
Peer comparison
Dec 31, 2024