IAC Inc. (IAC)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — | — | — | 3.03 | — | — | — | 0.14 | |||
| Days of sales outstanding (DSO) | days | 40.20 | 44.87 | 41.62 | 40.14 | 39.32 | 42.38 | 41.66 | 48.45 | 51.09 | 68.39 | 37.82 | 31.41 | 37.27 | 35.66 | |||
| Number of days of payables | days | 7.44 | 8.59 | 11.00 | 9.15 | 7.61 | 8.57 | 10.46 | 11.23 | 15.58 | 20.08 | 15.67 | 20.61 | 23.66 | 41.29 | |||
| Cash conversion cycle | days | 32.76 | 36.28 | 30.62 | 30.99 | 31.71 | 33.80 | 31.20 | 37.22 | 35.51 | 51.35 | 22.15 | 10.80 | 13.61 | -5.49 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 40.20 – 7.44
= 32.76
The cash conversion cycle of IAC Inc. has shown fluctuations over the past 17 quarters. The cycle indicates how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From Dec 31, 2020, to Mar 31, 2024, the cash conversion cycle ranged from a low of -5.49 days to a high of 51.35 days. A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers, which can be a positive sign of efficiency.
Notably, there was a significant increase in the cash conversion cycle from Dec 31, 2021, to Sep 30, 2022, reaching its peak at 51.35 days, before gradually decreasing and stabilizing around 30-37 days from Jun 30, 2023, to Mar 31, 2024.
Analyzing the trend, IAC Inc. appears to have managed its working capital more effectively in recent quarters, keeping the cash conversion cycle relatively stable. However, the company should continue monitoring and optimizing its inventory management, accounts receivable, and accounts payable processes to ensure efficient cash flow management.
Peer comparison
Mar 31, 2024