Live Nation Entertainment Inc (LYV)
Cash conversion cycle
| 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 | — | — | — | — | — |
| Cash conversion cycle | days | 1.06 | 0.95 | 1.15 | 2.83 | 5.73 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.06 + — – —
= 1.06
The cash conversion cycle of Live Nation Entertainment Inc has been steadily decreasing over the past five years. In December 31, 2020, the company's cash conversion cycle was 5.73 days, which decreased to 2.83 days in December 31, 2021, indicating a more efficient management of cash flow.
By December 31, 2022, the cash conversion cycle further improved to 1.15 days, reflecting the company's ability to convert investments into cash quickly. This trend continued in December 31, 2023, with the cash conversion cycle reducing to 0.95 days, demonstrating Live Nation's effectiveness in managing working capital.
Although there was a slight uptick in the cash conversion cycle to 1.06 days by December 31, 2024, the overall trend suggests that Live Nation Entertainment Inc has been successful in optimizing its cash conversion cycle and improving its liquidity position over the years.
Peer comparison
Dec 31, 2024