IAC Inc. (IAC)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 3.08 | 0.14 |
| Days of sales outstanding (DSO) | days | 44.87 | 42.38 | 68.39 | 35.71 |
| Number of days of payables | days | 8.71 | 8.73 | 20.35 | 41.29 |
| Cash conversion cycle | days | 36.16 | 33.65 | 51.12 | -5.44 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 44.87 – 8.71
= 36.16
The cash conversion cycle of IAC Inc. has fluctuated over the past four years. In 2023, the cash conversion cycle was 36.16 days, showing an increase from the previous year's value of 33.65 days. This indicates that the company took slightly longer to convert its investments in inventory and accounts receivable into cash during the year.
In 2021, the cash conversion cycle was significantly higher at 51.12 days, reflecting a longer time period for the company to convert its working capital into cash. However, in 2020, the company had a negative cash conversion cycle of -5.44 days, which may indicate that IAC Inc. was able to quickly convert its investments into cash during that period.
Overall, the trend in the cash conversion cycle suggests some fluctuations in the efficiency of IAC Inc.'s working capital management over the years, with 2020 standing out as a particularly efficient period. It is essential for the company to closely monitor and manage its cash conversion cycle to optimize its cash flow and working capital efficiency.
Peer comparison
Dec 31, 2023