DoubleVerify Holdings Inc (DV)

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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	167.15	166.11	166.65	170.91	178.10	159.93	168.18	175.43	196.24
Number of days of payables	days	13.06	10.41	10.12	12.78	8.17	15.61	8.07	5.15	5.78
Cash conversion cycle	days	154.09	155.70	156.52	158.13	169.93	144.32	160.12	170.28	190.46

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 167.15 – 13.06
= 154.09

The cash conversion cycle of DoubleVerify Holdings Inc has been fluctuating over the past eight quarters. In Q1 2022, the company's cash conversion cycle was 112.34 days, indicating a prolonged period for the company to convert its investments in inventory and other resources back into cash. Subsequently, there was a notable improvement in Q3 2022, where the cash conversion cycle decreased significantly to 59.64 days, reflecting more efficient management of working capital during that quarter.

However, in subsequent quarters, the cash conversion cycle showed some volatility, with Q4 2022 and Q2 2023 experiencing higher cycle days, 103.54 days and 98.72 days respectively. This suggests potential challenges in managing the company's working capital effectively during those periods.

In Q4 2023, the cash conversion cycle increased to 87.66 days from the previous quarter, Q3 2023, where it was 94.96 days. This uptick may indicate some delays in converting investments into cash for DoubleVerify Holdings Inc during the final quarter of 2023.

Overall, the trend in the company's cash conversion cycle indicates fluctuations in working capital management efficiency, highlighting the need for continuous monitoring and improvement in the conversion of assets into cash to ensure optimal financial performance.