IAC Inc. (IAC)
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 | — | — | — | — | — | — | — | — | — | — | — | — | 8.59 | — | — | — | 111.14 | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 8.59 | 0.00 | 0.00 | 0.00 | 111.14 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of IAC Inc. is a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales. Analyzing the historical data provided, we observe that the company's cash conversion cycle remained consistently low or zero for most of the periods, indicating efficient management of working capital during those times.
However, there was a significant increase in the cash conversion cycle to 111.14 days as of December 31, 2020. This spike may suggest potential issues with inventory management, accounts receivable, or accounts payable during that period that led to a delay in converting investments into cash.
Subsequently, the company was able to improve its cash conversion cycle to 8.59 days as of December 31, 2021, showcasing a more efficient working capital management strategy. The company maintained a low or zero cash conversion cycle in the subsequent periods, implying effective management of the conversion process.
Overall, the fluctuations in IAC Inc.'s cash conversion cycle highlight the importance of monitoring working capital efficiency and addressing any operational inefficiencies that may impact cash flow generation and liquidity in the business.
Peer comparison
Dec 31, 2024