Celsius Holdings Inc (CELH)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 127.30 | 82.12 | 104.59 | 149.89 |
| Days of sales outstanding (DSO) | days | 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 | 43.50 | 84.20 | 78.81 | 88.74 |
| Number of days of payables | days | 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 | 84.58 | 47.84 | 42.11 | 63.57 |
| Cash conversion cycle | days | 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 | 86.22 | 118.48 | 141.30 | 175.06 |
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 shown fluctuations over the past eight quarters. The trend indicates a gradual decrease in the cash conversion cycle from Q1 2022 to Q4 2022, followed by a slight increase in Q1 2023 and a subsequent fluctuation in the following quarters.
Overall, the cash conversion cycle of Celsius Holdings Inc has been relatively high, reflecting the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales. The higher the number of days in the cash conversion cycle, the longer the company takes to recoup its investment in operations.
The fluctuations in the cash conversion cycle may suggest inefficiencies in managing inventory, collecting receivables, or delaying payments to suppliers. It is essential for the company to closely monitor and improve these areas to optimize its working capital management and enhance overall financial performance.
Peer comparison
Dec 31, 2023