DoubleVerify Holdings Inc (DV)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — |
| Days of sales outstanding (DSO) | days | 166.97 | 178.13 | 195.96 |
| Number of days of payables | days | 13.06 | 8.09 | 5.78 |
| Cash conversion cycle | days | 153.91 | 170.04 | 190.18 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 166.97 – 13.06
= 153.91
The cash conversion cycle of DoubleVerify Holdings Inc has shown a positive trend of improvement over the past three years. The company's cash conversion cycle decreased from 109.00 days in 2021 to 103.54 days in 2022, and further decreased to 87.66 days in 2023. This indicates that the company has been able to efficiently manage its working capital and convert its inventory, accounts receivable, and accounts payable into cash at a quicker pace.
A decreasing cash conversion cycle is generally seen as a positive indicator as it means the company is able to generate cash more quickly from its operational activities. This can be attributed to effective inventory management, timely collection of receivables, and strategic payment of payables. By reducing the cash conversion cycle, DoubleVerify Holdings Inc may have improved its liquidity position and operational efficiency, which could potentially lead to better financial performance in the future.
Peer comparison
Dec 31, 2023