Live Nation Entertainment Inc (LYV)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 475.39 | 13.95 | 11.07 | 12.79 | 407.99 | 15.53 | 9.57 | 7.97 | 192.96 | 6.24 | 3.62 | 4.24 | 154.30 | 9.37 | 18.77 | 14.53 | 686.95 | 10.36 | 9.41 | 10.15 |
| Receivables turnover | 10.77 | 8.47 | 10.16 | 10.87 | 11.12 | 7.59 | 7.99 | 6.43 | 5.77 | 3.22 | 1.99 | 1.68 | 3.71 | 7.99 | 13.10 | 14.73 | 11.22 | 9.26 | 10.32 | 11.99 |
| Payables turnover | 80.23 | 72.12 | 61.67 | 98.42 | 87.74 | 72.69 | 50.48 | 114.96 | 59.00 | 39.02 | 27.39 | 33.47 | 39.31 | 64.72 | 68.62 | 123.73 | 110.38 | 67.88 | 48.27 | 77.01 |
| Working capital turnover | — | 16.89 | 25.49 | 24.90 | — | 51.53 | — | — | — | 3.81 | 4.99 | 2.80 | — | 16.29 | 8.61 | 92.48 | 135.38 | — | — | — |
A detailed analysis of Live Nation Entertainment Inc's activity ratios based on the provided data reveals the following insights:
1. Inventory Turnover: The company's inventory turnover ratio in Q4 2023 is exceptionally high at 383.07, indicating that the company is efficiently managing its inventory and quickly converting it into sales. However, no data is available for the previous quarters for comparison.
2. Receivables Turnover: Live Nation's receivables turnover ratios fluctuate across quarters, ranging from 6.43 to 11.12. The Q4 2023 ratio of 10.77 suggests that the company is collecting its receivables approximately 10.77 times during the year, indicating an efficient accounts receivable management process.
3. Payables Turnover: The payables turnover ratios vary significantly, with Q4 2023 showing a ratio of 8.10. This implies that the company is paying its accounts payable approximately 8.10 times a year. A higher turnover ratio suggests more frequent payments to suppliers.
4. Working Capital Turnover: While data is missing for Q1 and Q3 2023, Q2 and Q4 2023 show working capital turnover ratios of 25.49 and 24.90, respectively. These figures indicate that Live Nation is effectively utilizing its working capital to generate revenue.
Overall, Live Nation Entertainment Inc's activity ratios demonstrate effective management of inventory, receivables, payables, and working capital, suggesting operational efficiency and sound financial health. Despite variations across quarters, the company appears to be adept at managing its resources and optimizing its operational performance.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 0.77 | 26.16 | 32.96 | 28.54 | 0.89 | 23.50 | 38.15 | 45.79 | 1.89 | 58.53 | 100.77 | 86.14 | 2.37 | 38.94 | 19.45 | 25.13 | 0.53 | 35.24 | 38.77 | 35.97 |
| Days of sales outstanding (DSO) | days | 33.90 | 43.09 | 35.92 | 33.59 | 32.81 | 48.11 | 45.67 | 56.76 | 63.22 | 113.48 | 183.27 | 217.21 | 98.31 | 45.68 | 27.86 | 24.78 | 32.54 | 39.40 | 35.36 | 30.44 |
| Number of days of payables | days | 4.55 | 5.06 | 5.92 | 3.71 | 4.16 | 5.02 | 7.23 | 3.18 | 6.19 | 9.35 | 13.32 | 10.91 | 9.29 | 5.64 | 5.32 | 2.95 | 3.31 | 5.38 | 7.56 | 4.74 |
The Days of Inventory on Hand (DOH) ratio for Live Nation Entertainment Inc in Q4 2023 is 0.95 days. This indicates that the company is efficiently managing its inventory and quickly converting it into sales.
The Days of Sales Outstanding (DSO) ratio for Live Nation Entertainment Inc has shown some fluctuations over the quarters, with Q1 2022 having the highest DSO at 56.76 days. This metric measures how long it takes for the company to collect payment from its customers. The decreasing trend in DSO suggests an improvement in the company's ability to collect receivables efficiently.
The Number of Days of Payables ratio for Live Nation Entertainment Inc also displays variability, with significant fluctuations in Q2 2023 and Q1 2022. The sharp increase in Q1 2023 to 343.08 days indicates that the company is taking an extended period to pay its suppliers.
Overall, Live Nation Entertainment Inc appears to be effectively managing its inventory and receivables, although its payables management could be further optimized to ensure a balanced working capital cycle. The company may benefit from reviewing and streamlining its payment processes to enhance efficiency and maintain healthy relationships with its suppliers.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 10.83 | 10.84 | 10.09 | 9.54 | 11.21 | 13.75 | 10.68 | 7.16 | 5.74 | 3.65 | 1.23 | 0.74 | 1.69 | 4.08 | 7.22 | 9.92 | 10.33 | 10.74 | 11.04 | 11.70 |
| Total asset turnover | 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 | 1.05 | 1.13 | 1.08 | 1.07 |
The fixed asset turnover ratio measures a company's ability to generate revenue from its investment in fixed assets such as property, plant, and equipment. Live Nation Entertainment Inc has shown relatively stable performance in this ratio over the past eight quarters, with values ranging from 7.16 to 13.75. This suggests the company efficiently utilizes its fixed assets to generate sales, with a noticeable peak in Q3 2022. A high fixed asset turnover ratio indicates that Live Nation is effectively using its fixed assets to generate sales, which is a positive sign for investors.
The total asset turnover ratio reflects how efficiently a company utilizes all its assets to generate revenue. Live Nation's total asset turnover ratio has shown variations over the same period, with values ranging from 0.49 to 1.19. The company's ability to generate sales from its total assets has improved steadily, reaching a peak in Q4 2023. This indicates that Live Nation has been successful in using both its fixed and current assets to generate revenue.
Overall, Live Nation Entertainment Inc has demonstrated strong efficiency in utilizing its assets to generate sales, as evidenced by the increasing trend in the total asset turnover ratio. Coupled with a relatively stable and high fixed asset turnover ratio, the company's long-term activity ratios suggest effective asset management and operational performance.