Godaddy Inc (GDDY)
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 | — | 104.93 | — | — | — | 110.50 | 110.86 | 116.26 | 117.21 | 107.58 | 109.70 | 111.28 | 122.52 | 127.63 | 134.09 | 134.35 | 133.42 | 133.63 | 142.19 | 141.21 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 104.93 | 0.00 | 0.00 | 0.00 | 110.50 | 110.86 | 116.26 | 117.21 | 107.58 | 109.70 | 111.28 | 122.52 | 127.63 | 134.09 | 134.35 | 133.42 | 133.63 | 142.19 | 141.21 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle for Godaddy Inc, a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown a fluctuating trend over the past few years.
From March 31, 2020, to December 31, 2021, the cash conversion cycle ranged from around 122 to 142 days, indicating that the company took between approximately 4 to 5 months to convert its investments into cash flows. During this period, the cycle gradually decreased from its peak in June 2020 to its lowest point in December 2021, suggesting an improvement in the efficiency of Godaddy Inc's working capital management.
However, there were sudden drops to 0 days in the cash conversion cycle at the end of December 2023 and March 31, 2024, which could be attributed to data anomalies or exceptional circumstances not captured in the financial data.
Subsequently, the cycle increased again to around 105 days by September 30, 2024. This increase may indicate a lengthening of the time it takes for Godaddy Inc to convert its investments into cash flows from sales, potentially signaling challenges in managing working capital efficiently.
Overall, fluctuations in the cash conversion cycle can provide insights into the company's liquidity, operational efficiency, and ability to manage its working capital effectively. Monitoring these trends can help stakeholders assess the financial health and efficiency of Godaddy Inc.
Peer comparison
Dec 31, 2024