Live Nation Entertainment Inc (LYV)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 348.21 | — | — | 12.03 | 383.07 | 11.11 | 8.73 | 10.07 | 318.59 | 12.10 | 7.17 | 5.48 | 128.78 | 3.67 | 1.04 | 1.15 | 63.75 | 5.52 | 13.27 | 10.95 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | 246.52 | — | — | — | 16.89 | 25.49 | 24.90 | — | 51.53 | — | — | — | 3.81 | 4.99 | 2.80 | — | 16.29 | 8.61 | 92.48 |
Looking at the activity ratios of Live Nation Entertainment Inc, we observe fluctuations in the company's efficiency in managing its operating assets and liabilities over the years.
1. Inventory Turnover: The ratio indicates the number of times inventory is sold and replaced during a period. Live Nation's inventory turnover varied significantly over the years, ranging from as low as 1.04 in June 2021 to as high as 383.07 in December 2023. Generally, a higher turnover reflects better inventory management efficiency.
2. Receivables Turnover: Unfortunately, data for this ratio is unavailable, making it challenging to assess how effectively Live Nation collects on its credit sales.
3. Payables Turnover: Similar to receivables turnover, data is not provided for this ratio, which would have shown how quickly Live Nation pays its suppliers.
4. Working Capital Turnover: This ratio measures how efficiently working capital is utilized to generate sales. Live Nation's working capital turnover exhibited fluctuations, with values such as 92.48 on March 31, 2020, and 246.52 on September 30, 2024. A higher turnover ratio is generally preferred as it indicates effective management of working capital.
In conclusion, Live Nation's inventory turnover has been volatile, and without data on receivables and payables turnover, a comprehensive evaluation of the company's efficiency in managing its working capital is hindered. It's essential for the company to maintain a balance in managing its assets and liabilities to sustain operational efficiency and financial health.
Average number of days
| 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 | 1.05 | — | — | 30.35 | 0.95 | 32.85 | 41.83 | 36.24 | 1.15 | 30.18 | 50.87 | 66.64 | 2.83 | 99.53 | 350.77 | 317.29 | 5.73 | 66.12 | 27.50 | 33.35 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data on the activity ratios of Live Nation Entertainment Inc, we can analyze the Days of Inventory on Hand (DOH) metric, which measures how many days it takes for a company to turn its inventory into sales.
The DOH for Live Nation Entertainment Inc has shown significant fluctuations over the years. In December 2023, the company held inventory for only 0.95 days before selling it, indicating efficient inventory management. However, this efficiency deteriorated in June 2021 and June 2022, when the DOH spiked to 350.77 days and 50.87 days, respectively, suggesting potential issues with inventory turnover.
The most recent data point, December 2024, shows a DOH of 1.05 days, indicating a return to more efficient inventory management practices.
Due to the lack of data provided for the Days of Sales Outstanding (DSO) and Number of Days of Payables, we are unable to analyze these additional activity ratios to provide a comprehensive overview of Live Nation Entertainment Inc's working capital management and liquidity position.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 5.97 | 10.09 | 9.54 | 11.21 | 13.75 | 10.68 | 7.16 | 5.74 | 3.65 | 0.53 | 0.32 | 1.69 | 1.76 | 3.19 | 4.42 |
| Total asset turnover | 1.18 | 1.18 | 1.16 | 1.17 | 1.19 | 1.11 | 0.96 | 0.95 | 1.01 | 0.96 | 0.71 | 0.49 | 0.44 | 0.29 | 0.11 | 0.07 | 0.18 | 0.41 | 0.70 | 0.94 |
The Fixed Asset Turnover ratio for Live Nation Entertainment Inc has shown significant fluctuations over the years, starting at 4.42 in March 2020 and steadily declining to 0.32 in March 2021. Subsequently, there was a notable increase in the ratio to 13.75 in September 2022, followed by some fluctuations before stabilizing around 10 in the most recent period of June 2024. This suggests that the company is efficiently utilizing its fixed assets to generate revenue.
In contrast, the Total Asset Turnover ratio for Live Nation Entertainment Inc started at 0.94 in March 2020 and experienced a decreasing trend until December 2020, indicating lower efficiency in generating sales relative to total assets during that period. However, the ratio started to improve in the following years and has been fairly stable around 1 since December 2023. This demonstrates that the company is generating more revenue relative to its total assets in recent periods.
Overall, while the Fixed Asset Turnover ratio indicates an improvement in the utilization of fixed assets for revenue generation, the Total Asset Turnover ratio shows a positive trend in utilizing all assets to generate sales efficiently. It is essential for the company to continue monitoring and optimizing these ratios to ensure sustainable growth and profitability in the long run.