Live Nation Entertainment Inc (LYV)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 345.56 | 383.07 | 318.59 | 128.78 | 63.75 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Based on the provided data, we can analyze the activity ratios of Live Nation Entertainment Inc as follows:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory. A higher ratio indicates that Live Nation Entertainment Inc is selling its inventory more frequently.
- Live Nation's inventory turnover has been consistently increasing over the years, from 63.75 in 2020 to 383.07 in 2023, suggesting an improvement in inventory management efficiency.
- However, in 2024, the ratio slightly decreased to 345.56, indicating a possible slowdown in inventory turnover compared to the previous year.
2. Receivables Turnover:
- The receivables turnover ratio evaluates how quickly the company collects its accounts receivable. A higher ratio signifies faster collection.
- The data shows that there is no information available for the receivables turnover for Live Nation Entertainment Inc for the years 2020 to 2024. Without this data, we cannot assess the company's effectiveness in collecting receivables.
3. Payables Turnover:
- The payables turnover ratio measures how quickly the company pays its suppliers. A higher ratio implies that Live Nation is paying its suppliers more frequently.
- Similar to receivables turnover, there is no data provided for payables turnover for Live Nation Entertainment Inc for the years 2020 to 2024. Lack of information restricts the assessment of the company's payment behavior towards its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher ratio suggests a more effective utilization of working capital.
- The data does not contain information on the working capital turnover for Live Nation Entertainment Inc for the years 2020 to 2024, preventing an analysis of the company's ability to generate sales relative to its working capital.
In conclusion, while Live Nation Entertainment Inc has shown significant improvement in inventory turnover efficiency, the lack of data for receivables turnover, payables turnover, and working capital turnover limits a comprehensive assessment of the company's overall activity ratios. Further information on these ratios would provide a more complete picture of Live Nation's operational performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.06 | 0.95 | 1.15 | 2.83 | 5.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Activity ratios provide valuable insights into how efficiently a company manages its operations and assets.
1. Days of Inventory on Hand (DOH):
- Live Nation Entertainment Inc has shown a decreasing trend in its Days of Inventory on Hand from 5.73 days in 2020 to 1.06 days in 2024. This indicates that the company has been able to more efficiently manage its inventory levels, possibly through better inventory control or faster turnover of goods.
2. Days of Sales Outstanding (DSO):
- The data provided does not contain information on Live Nation Entertainment Inc's Days of Sales Outstanding. This ratio typically reflects the average number of days it takes a company to collect revenue after a sale, and a lower number is generally favorable as it signifies quicker cash conversion.
3. Number of Days of Payables:
- Similarly, the dataset does not include details on Live Nation Entertainment Inc's Number of Days of Payables. This ratio measures how long a company takes to pay its suppliers, and a longer time frame may indicate better cash flow management by delaying payments for as long as possible.
Overall, based on the available information on inventory management, Live Nation Entertainment Inc appears to have improved its efficiency in handling inventory, which can contribute to cost savings and better cash flow management in the long run.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 11.21 | 5.74 | 1.69 |
| Total asset turnover | 1.18 | 1.19 | 1.01 | 0.44 | 0.18 |
The fixed asset turnover ratio measures a company's ability to generate revenue from its fixed assets. In the case of Live Nation Entertainment Inc, the trend indicates a significant improvement over the years. The fixed asset turnover ratio has increased from 1.69 in 2020 to 11.21 in 2022. However, there is missing data for 2023 and 2024, which limits the ability to assess the recent performance accurately.
On the other hand, the total asset turnover ratio reflects how efficiently a company utilizes its total assets to generate revenue. Live Nation Entertainment Inc has shown a steady improvement in this ratio as well, increasing from 0.18 in 2020 to 1.18 in 2024. This indicates that the company is generating more revenue relative to its total assets, highlighting its operational efficiency and potential for growth.
Overall, the long-term activity ratios for Live Nation Entertainment Inc demonstrate a positive trend, suggesting a more efficient utilization of assets to drive revenue generation over the years. However, the missing data for 2023 and 2024 limits the ability to provide a complete picture of the company's performance in these specific periods.